IATA Announces Significant Reduction in Blocked Airline Funds
The International Air Transport Association (IATA) has reported a notable decrease in the amount of airline funds blocked from repatriation by governments. This improvement is primarily attributed to significant clearances of blocked funds in Nigeria and Egypt.
IATA’s Director-General, Willie Walsh, highlighted the crucial role Nigeria played in this development. “The major reason for the reduction was a significant clearance of funds blocked in Nigeria,” Walsh stated. He further noted that Egypt has also approved the clearance of a substantial accumulation of blocked funds.
However, Walsh pointed out that the devaluation of the Egyptian Pound and the Nigerian Naira had adversely affected airlines in both countries despite the clearances. “In both cases, airlines were adversely affected by the devaluation of the Egyptian Pound and the Nigerian Naira,” he said.
While progress has been made in Nigeria and Egypt, the situation remains severe in Pakistan and Bangladesh, where a combined total of $731 million in airline funds is still blocked. Pakistan is currently withholding $411 million, and Bangladesh is withholding $320 million.
“Pakistan and Bangladesh must release the $731 million in blocked funds immediately to ensure airlines can continue providing essential air connectivity,” IATA’s statement urged. “In Bangladesh, the solution is in the hands of the Central Bank, which must prioritize aviation’s access to foreign exchange in line with international treaty obligations. The solution in Pakistan is finding efficient alternatives to the system of audit and tax exemption certificates, which cause long processing delays.”
This development underscores the ongoing challenges faced by the global aviation industry in repatriating revenues and maintaining essential air connectivity. IATA continues to advocate for the resolution of these issues to support the financial stability of airlines worldwide.
