IATA concerns over revenue owed to Bangladesh-Pakistan

The International Air Transport Association (IATA), an alliance of international air service providers, claims that Bangladesh and Pakistan are owed a total of $720 million in revenue. IATA said that the governments of the two countries have also been urged to pay the outstanding amount quickly.

IATA, an alliance of 320 of the world’s leading international airline companies, transports 83 percent of the world’s air passengers every day. Countries have to pay certain amount of revenue to this organization for this service. With this amount of revenue, the organization carries out various service related expenses. Founded in 1945, the headquarters of this alliance is in Montreal, Canada.

According to the officials of the Asia Pacific branch office of Yata, 323 million dollars are owed to Bangladesh and 399 million dollars to Pakistan from various international airlines belonging to this alliance.

Airlines companies conduct various business activities including selling tickets in different countries of the world. The revenue earned therefrom is repatriated by the companies.

IATA Asia Pacific branch officials said that the revenue retention of various international service organizations in Bangladesh and Pakistan has reached a critical level. Philip Gohr, vice president of this branch office, said that the service companies have to pay the aircraft lease payments, spare parts, fuel oil and other incidental expenses in dollars; And to meet these expenses, the organizations depend on the revenue received from different countries. So if the revenue is arrears for a long time, the airlines have to face huge problems. There is also the risk of loss due to fluctuations in currency exchange rates if revenue is delayed.

In a statement, Philip Gohr said, ‘We understand that since the Corona epidemic, various countries are under great pressure due to the foreign exchange reserve crisis. Bangladesh-Pakistan is also in the list of those countries.

‘But we are helpless. Because inordinate delay in payment of revenue as per the contract is breach of prima facie condition (of the contract). If the revenue is not paid soon, the companies will be forced to curtail services in these two countries.’

SMW