International Air Transport Association
DUBAI: The International Air Transport Association (IATA) has issued a call to both Pakistan and Bangladesh on Tuesday, urging them to eliminate barriers hindering airlines from repatriating ticket revenues. This appeal comes after Nigeria recently released the majority of blocked funds.
As per IATA, Pakistan and Bangladesh collectively owe $731 million out of a global total of $1.8 billion in blocked airline funds. Numerous countries have encountered challenges in repatriating funds due to currency devaluation, a shortage of US dollars, or bureaucratic hurdles.
Xie Xingquan, IATA’s regional vice-president for North Asia, emphasized the significance of prioritizing the release of airlines’ funds for both economic stability and the continuity of airline operations.
He noted that in Pakistan, the primary obstacle lies in delays related to airline requirements for submitting audit and tax exemption certificates. Meanwhile, in Bangladesh, the key issue revolves around a shortage of US dollars or foreign currencies.
IATA revealed that Nigeria has successfully cleared 98% of its blocked funds, amounting to $850 million as of June 2023. Additionally, Egypt has approved the clearance of its blocked funds.
These developments, in conjunction with Nigeria’s efforts, have contributed to reducing the total backlog by approximately 28% since December of the previous year.
However, several countries, including Lebanon, Ethiopia, and Algeria, are yet to release the funds owed to airlines, according to IATA’s records.
The prolonged delay in releasing these funds poses significant challenges to the airline industry’s financial stability and operational continuity.
Therefore, IATA continues to advocate for the prompt resolution of these issues to ensure the smooth functioning of global aviation.
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