IATA urges two Arab League governments to address airline blocked funds

The two are Sudan and Egypt. IATA also named Nigeria, Angola and Venezuela as being among the worst offenders.

“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.
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.
“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          US$         Months held 
Venezuela     $3,780m          16 
Nigeria          $591m               7 
Sudan           $360m               4 
Egypt.           $291m               4 
Angola          $237m               7