IATA Calls On Governments To Address Blocked Airline Funds
Open Jaw, Bruce Parkinson
IATA is calling on governments to abide by international agreements and treaty obligations to enable airlines to repatriate revenues from ticket sales and other activities. According to the airline association, the amount of airline funds blocked from repatriation totaled US$4.9 billion at the end of 2017, down 7% compared to year-end 2016. However, airline funds remain blocked in some 16 countries.
"The connectivity provided by aviation is vital to economic growth and development. Aviation supports jobs and trade, and helps people to lead better lives. But airlines need to have confidence that they will be able to repatriate their revenues in order to bring these benefits to markets," said Alexandre de Juniac, IATA’s Director General and CEO.
"We have had some recent success. The US$600 million backlog in Nigeria has been cleared. And we have made US$120 million of progress from a peak of over US$500 million in Angola. I encourage the government of Angola to work with airlines to help to reduce this backlog further," said de Juniac.
The top five markets with blocked funds are:
Venezuela, where airlines have been unable to repatriate US$3.78 billion
Angola, where approximately US$386 million remains blocked
Sudan where US$170 million is blocked
Bangladesh, where US$95 million is blocked
Zimbabwe, where US$76 million is blocked
"Given the deepening economic crisis in Venezuela, a resolution appears to be unlikely in the short term. But we are encouraged by the recent developments in Nigeria and Angola, and hope other states will also move quickly to address blocked funds," de Juniac said.
Bruce Parkinson Editor-in-Chief
An observer and analyst of the Canadian and international travel industries for over 25 years, Bruce uses the pre-dawn hours to prepare a daily news and information package to keep industry members up to date.