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Blocked Airline Funds Could Slow Recovery, Warns IATA

Our Bureau - : Aug 20, 2021 - : 11:25 am

The International Air Transport Association (IATA) has urged governments to help speed up the aviation industry’s recovery by abiding by international agreements and treaty obligations to enable airlines to repatriate close to nearly $1 billion in blocked funds from the sale of tickets, cargo space, and other activities.

“Governments are preventing nearly $1 billion of airline revenues from being repatriated,” said Willie Walsh, IATA’s director general. “This contravenes international conventions and could slow the recovery of travel and tourism in affected markets as the airline industry struggles to recover from the COVID-19 crisis. Airlines will not be able to provide reliable connectivity if they cannot rely on local revenues to support operations. Now is not the time to score an ‘own goal’ by putting vital air connectivity at risk.”

Approximately US $963 million in airline funds are being blocked from repatriation in nearly 20 countries with Bangladesh (US$146.1 million), Lebanon (US$175.5 million), Nigeria (US$143.8 million) and Zimbabwe (US$142.7 million) accounting for more than 60 percent of the total. Bangladesh and Zimbabwe have of late taken steps to reduce blocked funds.

“We encourage governments to work with industry to resolve the issues that are preventing airlines from repatriating funds,” added Walsh. “This will enable aviation to provide the connectivity needed to sustain jobs and energize economies as they recover from COVID-19.”

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