Nigeria, Lebanon, others block $608.1m airline revenue —IATA
The International Air Transport Association (IATA) said the sum of $608.1million airline revenues was block by Nigeria, Lebanon, Bangladesh and Zimbabwe government respectively. It added that nearly $1 billion in airline revenues are blocked by government across the globe.
This was disclosed by the organisation via a statement issued by the IATA which was seen by the Nigerian NewsDirect.
A breakdown of the revenues revealed by IATA indicate that not less than $143.8million airline revenues were blocked by the Nigerian government.
However, the body urged governments to abide by international agreements and treaty obligations to enable airlines to repatriate nearly $1 billion in blocked funds from the sale of tickets, cargo space, and other activities.
Shielding more lights into the opportunities and challenges following through international practices and payments could conferred on countries. IATA Director -General, Willie Walsh, noted that prompt repatriation will enhance reliable connectivity, while flouting the rules could slow down recovery of the industry.
According to him, “Nigeria blocks $143.8 million. 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 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.”
He revealed that about $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.
“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 energize economies as they recover from COVID-19,” added Walsh.
Recall that in December 2020, Nigeria NewsDirect reports that the sum of $53 million, which is the proceeds from sales of foreign airlines tickets, are trapped in Nigeria.
IATA’s Regional Vice President for Africa and the Middle East (AME), Mr Muhammed Albakri, explained that foreign airlines operating into Nigeria are having difficulties repatriating the fund back to their operational base.
The effort by our correspondent to reaction on the subject from the spokesperson of NCAA was futile.
