Foreign airlines have $320 million stuck in Bangladesh, with this amount being trapped for the past 40 months.
The situation has become "severe" in Pakistan and Bangladesh, says the International Air Transport Association (IATA), with airlines unable to repatriate $731 million of revenues earned in these markets.
IATA, representing 300 airlines worldwide, reports that $411 million is stuck in Pakistan, $320 million in Bangladesh, $286 million in Algeria, $151 million in the XAF zone (six Central African countries), $149 million in Ethiopia, $129 million in Lebanon, $116 million in Eritrea, and $69 million in Zimbabwe.
These funds have been trapped for periods ranging from 37 to 116 months, totalling nearly $2 billion.
Earlier, Nigeria had the highest amount of trapped airline revenue at $850 million, but they have managed to pay off 98% of this amount by April 2024.
IATA's Director General, Willie Walsh, said, “Bangladesh and Pakistan must release these funds immediately to ensure that airlines operating in these countries can maintain essential air connectivity.”
In Bangladesh, the resolution lies with the central bank, the Bangladesh Bank, according to IATA.
The association said, “Countries need to prioritise access to foreign currency for aviation in accordance with international treaty obligations.”
An official from a foreign airline, speaking anonymously, said, “If the situation with fund release does not improve, flight operations from Bangladesh may be disrupted.”
Afsia Jannat Saleh, secretary general of the Association of Travel Agents of Bangladesh (ATAB), told Bangladesh First, “We have informed the Ministry of Civil Aviation and Tourism about the issue. If the problem persists, businesses associated with this sector will face risks, and the country will lose out on revenue.”
Meanwhile, for Pakistan, IATA said, the solution is to find "efficient alternatives to the system of audit and tax exemption certificates", which are causing long processing delays.
Major airlines affected include Emirates, Qatar Airways, Air Arabia, Saudia, and Flydubai.
