in Business & Finance

IATA and Egyptian authorities working together to address airline blocked funds

Posted 30 August 2016 · Add Comment

The International Air Transport Association (IATA) and Egyptian authorities are working together to find a practical solution to release, for repatriation foreign exchange funds due international airlines operating to Egypt.

Since March, airlines have been unable to repatriate the full amount due them under international conventions, as a result of restrictions imposed by the Government of Egypt. The current value of funds blocked in Egypt stands at US$275 million.

Discussions between airlines, the Central bank of Egypt and Egypt's Civil Aviation Authority have resulted in the release of US$240m for repatriation. Talks continue towards establishing a realistic and achievable payment schedule to settle the remaining amount.

Connectivity is critical for Egypt.  Aviation supports over 1 million jobs and provides US$13.1 billion in social and economic benefits to the country.

The economic impact of the connectivity that aviation provides is essential for Egypt to overcome current economic challenges. Airlines struggle to provide vital connectivity if they are not able to recover revenues which are essential to covering their costs.  IATA, the airlines serving Egypt and the Government of Egypt are working closely to find a solution that will comply with international obligations and facilitate effective air links in support of Egyptian business, including trade and tourism.

 

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