IATA has reported that governments have blocked US$1,7bn (R30,3bn) in airline funds from repatriation as at the end of October. This is a small improvement compared with the US$1,8 billion (R32,1bn) reported at the end of April.
About US$1 billion (R17,8bn) of the airline money blocked from repatriation is in African countries, about 59% of the global total.
Over the last six months, there were significant reductions in blocked funds in Algeria (US$193m/R3,4bn from US$286m/R5,1bn in April) and Ethiopia (US$43m/R767m from US$149m/R2,6bn in April).
At the same time, XAF Zone (+US$84m/R1,5bn), Mozambique (+US$84m/R1,5bn) and XOF Zone (+$73m/R1,3bn) contributed to the largest increases.
The XAF Zone refers to Central African countries: Cameroon, Central African Republic, Chad, Republic of the Congo, Equatorial Guinea, and Gabon. The XOF Zone refers to West African countries: Benin, Burkina Faso, Ivory Coast, Guinea-Bissau, Mali, Niger, Senegal and Togo.
“Over the last six months, we have seen significant reductions in blocked funds in Pakistan, Bangladesh, Algeria and Ethiopia. At the same time, amounts are rising in the XAF/XOF zones and Mozambique,” said Willie Walsh, IATA DG.
“This unfortunate game of ‘whack-a-mole’ is unacceptable. Governments must remove all barriers for airlines to repatriate their revenues from ticket sales and other activities in accordance with international agreements and treaty obligations.
“No country wants to lose aviation connectivity, which drives economic prosperity. But if airlines cannot repatriate their revenues, they cannot be expected to provide a service. Economies will suffer if connectivity collapses. So, it is in everyone’s interest, including governments, to ensure that airlines can repatriate their funds smoothly,” said Walsh.
Nine countries account for 83% of the airline industry’s blocked funds, amounting to US$1,43 billion (R25,5bn). They are Pakistan, Bangladesh, Algeria, Angola, Mozambique, Eritrea, Lebanon, XAF Zone and XOF Zone.
