Tuesday, June 05, 2018

IATA asks govts to release blocked funds to airlines

The International Air Transport Association (IATA) on Tuesday asked governments across the world to release blocked funds to their airlines and repatriate their revenues.
At its ongoing annual meeting and the World Air Transport Summit here, IATA chief Alexandre de Juniac said a total of about USD 5 billion worth of funds remained blocked at the end of 2017 in some 16 countries.
As per an RTI reply in March this year, the government owed over Rs 325 crore to Air India in unpaid bills for VVIP chartered flights to foreign countries.
“The connectivity provided by aviation is vital to economic growth and development as it supports jobs and trade … But airlines need to have confidence that they will be able to repatriate their revenues in order to bring these benefits to markets,” ...
He called on the governments to abide by international agreements and treaty obligations to enable airlines to repatriate revenues from ticket sales and other activities.
According to IATA, the amount of airline funds blocked from repatriation totalled USD 4.9 billion at the end of 2017, which was down 7 per cent compared to year-end 2016.
However, airline funds remain blocked in some 16 countries, it said without identifying all of them.
Air India, which recently witnessed a lack of interest by investors in the process of its disinvestment, has Rs 325.81 crore in pending bills.
05/06/18 PTI/Deccan Herald