Friday, August 20, 2021

Air Association Points the Finger at World Governments Sitting on Cargo and Passenger Funding

Billions of Dollars of Agreed Monies Withheld
Shipping News Feature

WORLDWIDE – Once again governments around the globe are clearly annoying the International Air Transport Association (IATA) as it accuses them of failing to abide 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.

IATA claims that approximately $963 million in airline funds are being blocked from repatriation in nearly 20 countries. Four countries: Bangladesh ($146.1 million), Lebanon ($175.5 million), Nigeria ($143.8 million), and Zimbabwe ($142.7 million), account for over 60% of this total, although there has been positive progress in reducing blocked funds in Bangladesh and Zimbabwe of late.

Additionally IATA says that over $4 billion in airline revenues blocked in Venezuela has not been resolved successfully, but that this figure is not, however, included in IATA’s tracking. Willie Walsh, IATA’s Director General said:

“We encourage governments to work with industry to resolve the issues that are preventing airlines from repatriating funds. This will enable aviation to provide the connectivity needed to sustain jobs and energise economies as they recover from Covid19. Governments are preventing nearly $1 billion of airline revenues from being repatriated.

“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 prioritise ensuring that funds can be repatriated efficiently. Now is not the time to score an ‘own goal’ by putting vital air connectivity at risk.”