The International Air Transport Association (IATA) has commended Nigeria for releasing $265 million to foreign airlines last week, as the first tranche of their $464 million revenue held in the country.
Lauding the federal government, the global body called on countries like Ethiopia, Algeria and others with airlines’ blocked fund to emulate Nigeria by releasing the money to the airlines.
IATA’s Regional Vice President Africa & Middle East, Kamil Alawadhi in a statement said, “IATA welcomes the Nigerian government’s release of $265m of airlines’ blocked funds. We will continue to engage with it on expediting the release of the remaining amount, so that airlines can continue providing the connectivity Nigeria requires without disrupting and harming its economy and jobs.
“We encourage other countries, in Africa and elsewhere that are blocking the repatriation of foreign airlines’ funds, to follow Nigeria’s example and release the money they are withholding. Without it, airlines cannot afford to serve those countries. This would be detrimental to the people and businesses that depend on the market connectivity those airlines provide,”
He also said that IATA speaks and leads the industry on matters of common interest and while IATA cannot speak for individual airlines, “we hope the release of blocked funds with assurances and safeguards to prevent a recurrence, will persuade affected carriers to continue serving Nigeria.”
IATA also noted, “Even after this welcome and sizeable release, there will still be more than $200m of airlines funds blocked in Nigeria.”
It listed other African countries with blocked funds to include Zimbabwe, $100 million; Algeria, $96 million: Eritrea, $79 million and Ethiopia, $75 million.
On Friday the Central Bank of Nigeria (CBN) released $265 million of the foreign airlines fund and said that it paid the money in a bid to check a brewing crisis in the country’s aviation sector.
Although no foreign airline has issued a statement on it but IATA’s response has shown that the foreign carriers have accessed the fund.
There are also indications that some foreign airlines have opened their low fares, which were blocked because of the trapped fund.
A travel agent who spoke to THISDAY said that the fares would further reduce in coming weeks.
Airfares of about six hours from Nigeria ranges from $1,600 (Lagos to London, Turkish airlines) to $2,075 (Lagos to London, British Airways), while other airlines like Lufthansa, Virgin Atlantic Airways have fares in between.
All the fares on the airlines’ websites were shown in dollars, but the President of the National Association of Nigeria Travel Agencies (NANTA) Mrs. Susan Akporoaye explained to THISDAY that the dollars are converted to Naira or any other currency at the point of payment.
“That website you see is the same in any other country but when you want to buy the ticket the money is converted to Naira, euro or any other currency at the point of purchase,” she said.
