The amount of airline funds for repatriation being blocked by governments has risen by more than 25%, almost $394 million in the last six months, according to International Air Transport Association (IATA). IATA calls on governments to remove all barriers to airlines repatriating their revenues from ticket sales and other activities, in line with international agreements and treaty obligations.
"No business can sustain providing service if they cannot get paid and this is no different for airlines," commented IATA's Director General Willie Walsh, while explaining how preventing airlines from repatriating funds may appear to be an easy way to shore up depleted treasuries, but ultimately the local economy will pay a high price. He further emphasised by pointing out that enabling the efficient repatriation of revenues is critical for any economy to remain globally connected to markets and supply chains.
According to the data provided by IATA, airline funds are being blocked from repatriation in more than 27 countries and territories. The top five countries are Nigeria with $551, Pakistan- $225 million, Bangladesh - $208 million, Lebanon - $144 million, and Algeria – with $140 million.
For Nigeria, the repatriation issues arose in March 2020 when demand for foreign currency in the country outpaced supply and the country’s banks were not able to service currency repatriations. Despite these challenges Nigerian authorities have been engaged with the airlines and are, together with the industry, working to find measures to release the funds available.
Kamil Al-Awadhi as Regional Vice President for Africa and the Middle East said: “Nigeria is an example of how government-industry engagement can resolve blocked funds issues. Working with the Nigerian House of Representatives, Central Bank, and the Minister of Aviation resulted in the release of $120 million for repatriation with the promise of a further release at the end of 2022. This encouraging progress demonstrates that, even in difficult circumstances, solutions can be found to clear blocked funds and ensure vital connectivity.”
IATA is also renewing its calls on Venezuela to settle the $3.8 billion of airline funds that have been blocked from repatriation since 2016 when the last authorization for limited repatriation of funds was allowed by the Venezuelan government.