Tony Tyler
The IATA, therefore, appealed to
Nigerian government and four others to respect international agreements
obliging them to ensure airlines are able to repatriate their revenues.
The
funds were proceeds from sale of tickets by the airlines in the last 12
months, which could not be repatriated due to Federal Government’s
policy on foreign exchange.
Estimates have it that both Delta and
United Airlines have an estimated sum of $180 million hanging in the
Nigerian economy. Those of Air France-KLM are estimated to be over $150
million.
British Airways has a total of $100 million as of March
2016, while Iberia, which had already withdrawn its services has $5
million of its funds trapped.
Director-General of IATA, Tony
Tyler, at the opening of 72nd yearly general meeting of the organisation
in Dublin, yesterday said: “While 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.”
A
global estimate disclosed at the meeting shows that Nigeria is second
after Venezuela as the country with highest number of trapped funds.
While Venezuela traps a total $3.8 billion in its economy in the last 17
months, others like Sudan has $360 million for four months; Egypt, $291
million in the last four months and Angola, $237 million for seven
months.
For Nigeria, IATA said that 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 further said.
