Metropolis Report –
Bangladesh is now the second-worst performing country in the world after withholding $214.1 million in airline funds, according to a press statement from the International Air Transport Association (IATA) on Sunday (4 June).
IATA, which represents about 300 airlines or 83 percent of global air traffic, is the trade association for airlines. IATA supports various aspects of aviation activity and aids in the development of industry policy on important aviation issues.
According to IATA data, the blocked funds for the airline industry as of April this year increased by 47 percent to $2.27 billion from $1.55 billion in April 2022.
68 percent of the blocked funds are accounted for by the top five nations. Nigeria ($812.2 million), Bangladesh ($214.1 million), Algeria ($196.3 million), Pakistan ($188.2 million), and Lebanon ($141.2 million) are among them.
“Airlines cannot continue to offer services in markets where they are unable to repatriate the revenues arising from their commercial activities in those markets. Governments need to work with industry to resolve this situation so airlines can continue to provide the connectivity that is vital to driving economic activity and job creation,” IATA Director General (DG) Willie Walsh has said.
Walsh urged the relevant governments to work with the sector and find a solution to this pressing problem, which is essential for sustaining the provision of essential connectivity and is a key factor in promoting economic growth and job creation.
IATA has encouraged the relevant countries to uphold their duties under international treaties and accords to allow airlines to repatriate the money made from ticket sales, the use of cargo space, and other related operations.
Failure to address this problem might endanger airline connectivity and impede economic expansion in these markets, according to IATA.
