The International Air Transport Association (IATA) called on governments
to respect international agreements obliging them to ensure airlines are able
to repatriate their revenues.
"Air connectivity is vital to all economies. The airline industry
is a competitive business operating on thin margins. So the efficient
repatriation of revenues is critical for airlines to be able to play their role
as a catalyst for economic activity. It is not reasonable to expect airlines to
invest and operate in nations where they cannot efficiently collect payment for
their services," said Tony Tyler, IATA’s Director General and CEO.
Venezuela and Nigeria
IATA monitors blocked funds globally, the sum of which exceeds $5
billion. The top two countries blocking the repatriation of airline funds are
Venezuela and Nigeria.
Venezuela: Airline funds blocked from repatriation in Venezuela total
$3.8 billion. Currency controls implemented in 2003 necessitate government
approval to repatriate funds. By 2013, approvals were not keeping pace with the
amount of funds requiring repatriation and significant airline revenue
accumulated in Venezuela. The situation became critical in 2015 when only one
request to repatriate funds was approved. So far in 2016 only one request to
repatriate funds has been granted.
Nigeria: Total airline funds blocked from repatriation in Nigeria are
nearing $600 million. Repatriation issues arose in the second half of 2015 when
demand for foreign currency in the country outpaced supply and the country’s
banks were not able to service currency repatriations. Nigerian authorities are
engaged with the airlines and are, together with the industry, seeking possible
measures to make the funds available.
"Blocked funds are a problem in a diverse group of countries, some
of them undergoing significant economic challenges particularly with a fall-off
in oil revenues. But one thing all five nations have in common is the urgent
need for robust air connectivity that is being hampered by airlines’ difficulty
in repatriating funds. Strong connectivity is an economic enabler and generates
considerable economic and social benefits--something that struggling economies
need more than ever. It is in everybody’s interest to ensure that airlines are
paid on-time, at fair exchange rates and in full," Tyler said.
Top Five Country’s Blocking Repatriation of Airline Funds
|
Country
|
Amount US$ Million
|
Months Held
|
|
Venezuela
|
3,780
|
16
|
|
Nigeria
|
591
|
7
|
|
Sudan
|
360
|
4
|
|
Egypt
|
291
|
4
|
|
Angola
|
237
|
7
|
Source: IATA
No comments:
Post a Comment