The International Air Transport Association (IATA) has issued a pressing call to the Bangladesh government to promptly release airline revenues exceeding $323 million, currently held in violation of international agreements.
According to IATA, this situation has reached a critical juncture, with airlines struggling to repatriate earnings accrued in these markets. The association emphasized the necessity for Bangladesh’s Central Bank to accord aviation a higher priority to streamline access to foreign exchange, despite the country’s relatively standardized processes.
In a joint effort with Pakistan, Bangladesh has collectively withheld $720 million ($399 million in Pakistan and $323 million in Bangladesh). Philip Goh, IATA’s Regional Vice President for Asia-Pacific, underscored the significance of timely revenue repatriation, crucial for fulfilling dollar-denominated expenses essential for aviation operations.
Delaying these repatriations not only breaches international obligations outlined in bilateral agreements but also escalates exchange rate risks for airlines, Goh emphasized. Urging immediate action, he stressed the pivotal role of released funds in sustaining efficient air connectivity vital for both economies.
Acknowledging the complexities governments face in strategic currency utilization, IATA underscored the paramount importance for airlines to prioritize markets based on their confidence in timely revenue remittance, emphasizing the potential economic constraints resulting from reduced air connectivity.
IATA attributed the delays in Bangladesh’s fund repatriation to a scarcity of US dollars and has actively engaged with the government to advocate for prioritizing the aviation sector in dollar fund allocation. This advocacy aims to facilitate the remittance of airlines’ earnings, essential for sustaining operational vitality.
Pre-Covid, Bangladesh’s aviation sector played a pivotal role, supporting approximately 125,000 jobs and contributing $728 million to economic activity. Despite pandemic setbacks, passenger numbers rebounded to pre-Covid levels in 2023, with projections indicating a more than twofold increase by 2040.
Representing about 320 airlines, constituting 83% of global air traffic, IATA remains steadfast in its advocacy for the aviation industry’s interests, emphasizing the urgency for resolving the impasse surrounding revenue repatriation in Bangladesh.
