The International Air Transport Association (IATA) has urged the airlines of the world to pay 3,500 crore rupees stuck in Bangladesh immediately.
The agency has also warned that the withholding of this huge amount of money is in violation of international aviation agreements.
Philip Goh, IATA’s vice-president for Asia Pacific, said in a statement on Tuesday, “It is critical that airlines repatriate this revenue in time to pay for lease contracts, spare parts purchases, overflight fees and fuel costs. Delay in payment of dues violates international obligations written in bilateral agreements and increases exchange rate risk for airlines.”
The International Air Transport Association (IATA) is a trade association of over 300 airlines worldwide. The 300 airlines belonging to this organization transport about 84 percent of the world’s air passengers. IATA assists member countries and airlines in various aviation related activities and regulates policies and standards.
According to the statement, foreign airlines owe Pakistan and Bangladesh $720 million. In Bangladeshi currency, the amount of which is about 7 thousand 900 crores.
Of this, Bangladesh owes 323 million dollars to foreign airlines; About 3 thousand 542 crores in Bangladeshi currency. And, Pakistan owes 399 million dollars which is about 4 thousand 376 crores in Bangladeshi currency.
In a statement, IATA said the situation has become critical due to non-payment of this huge amount of debt. IATA urged the governments of the two countries to comply with international agreements and treaty obligations, so that the airlines can continue their services.
“Pakistan and Bangladesh should pay the withheld amounts immediately, so that the airlines can continue to operate efficiently and relationships with creditor airlines are maintained,” said Philip Goh.
In a statement, IATA said, Bangladesh is unable to pay mainly due to the dollar crisis. That is why Bangladesh Bank is being asked to pay more attention to the aviation sector. The central bank is also being contacted by IATA.
Pakistan, on the other hand, has been advised to ease the process of taking airline money. Currently, Pakistan has obligations to submit audit reports and tax exemption documents for payment of foreign liabilities, which causes unnecessary delays, the statement said.
Philip Goh added, “We recognize how important it is for countries to be strategic in their use of foreign exchange in the current environment. It is also a tough challenge for the government. However, priority should be given to repaying debts in a timely and efficient manner. This is essential to prevent decline in air connectivity, achieve economic growth, maintain foreign investment and export potential. With such huge sums of money stuck in both markets, an urgent solution is needed.”
When asked how this huge debt was created and what effect the outstanding amount could have on Bangladesh, aviation expert and former member of the Air Traffic Control Board Kazi Wahidul Alam told bdnews24.com, “Foreign airlines that operate flights to Bangladesh, the profit from the sale of their tickets goes to various travel agencies. are sent abroad subject to the approval of Bangladesh Bank. It is supposed to be sent every month. But for the last few years, the agencies are not able to pay the money on time due to not getting approval from Bangladesh Bank regularly. As a result of this huge debt.”
He said, due to this, the airlines have increased their ticket prices in Bangladesh. Many complain that the ticket prices are higher in the country than in other countries. Airlines are raising ticket prices to cover losses, to keep the dollar value in line with what they owe.
