News

Iata urges repatriation of $1bn in blocked funds owed to airlines

Governments are being urged to help airlines repatriate almost $1 billion in blocked funds from the sale of tickets, cargo space and other activities.

About $963 million in airline funds are being blocked from repatriation in nearly 20 countries, according to Iata.

Four countries: Bangladesh ($146.1 million), Lebanon ($175.5 million), Nigeria ($143.8 million), and Zimbabwe ($142.7 million), account for more than 60% of the total.

More than $4 billion in airline revenues blocked in Venezuela has not been resolved successfully. But it is not included in Iata’s tracking.

However, there has been recent positive progress in reducing blocked funds in Bangladesh and Zimbabwe.

Iata director general Willie Walsh said: “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.”

He warned: “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.

“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 Covid-19.”

Share article

View Comments

Jacobs Media is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.