The International Air Transport Association (IATA), an organization representing 290 airlines worldwide, is urging governments to abide by international agreements and treaty obligations to enable airlines to repatriate close to nearly $1 billion in blocked funds.
The funds came from the sale of tickets, cargo space, and other activities.
“Governments are preventing nearly $1 billion of airline revenues from being repatriated,” Willie Walsh, IATA director general, said. “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. That is why it is critical for all governments to prioritize ensuring that funds can be repatriated efficiently. Now is not the time to score an ‘own goal’ by putting vital air connectivity at risk.”
In nearly 20 countries, approximately $963 million in airline funds are being blocked from repatriation. Four countries account for more than 60 percent of the total: Zimbabwe, $142.7 million; Nigeria, $143.8 million; Bangladesh, $146.1 million; and Lebanon, $175.5 million.
Positive progress has been made in reducing blocked funds in Bangladesh and Zimbabwe, according to the association.