Egypt has cleared a backlog of nearly $250 million owed to international airlines for flight ticket sales, according to a statement from the International Air Transport Association (IATA).
The IATA last year warned Egypt it risked damaging its aviation industry if it did not unblock the release of funds owed to foreign carriers, with the amount owed at the time amounting to nearly $250 million.
However, a statement from IATA sent to ZAWYA on Tuesday said Egyptian authorities had cleared the backlog of funds in recent months.
“Blocked funds continue to be a problem in a diverse group of countries. However, we do have good news from Egypt where the backlog has been cleared and repatriations have been processed with no delays for the last two months,” IATA said in a press statement.
Terrorist attacks and economic constraints had a major impact on Egypt’s economy, especially the vital tourism sector, but its outlook appears to be improving. The North African state reported a 51 percent year-on-year increase in tourist arrivals in the first quarter of 2017, according to a report issued by the Moody’s Investors Service in June. Real estate consultancy firm Colliers on Tuesday also reported that average hotel occupancy levels during the second quarter of 2017 rose 4 percent year-on-year in the capital Cairo and the outlook for the remainder of the year was high, with "the potential to return to pre-2011 levels".
While Egypt has cleared the blocked funds it has was withholding, a number of countries still owe large sums to foreign carriers, with Venezuela once again topping the list.
The Latin American country tops the 2017 list with $3.78 billion still outstanding to international airlines, followed by Angola ($477 million), Sudan ($190 million), Nigeria ($171 million) and Bangladesh ($79 million).
“Airlines are also gradually clearing their backlog in Nigeria. Unfortunately, a quick solution to the $3.8 billion of funds blocked in Venezuela looks improbable,” the IATA statement added.
Dubai's Emirates airline last year said it was "facing difficulties" repatriating funds from some African countries on the list, but it declined to comment on the latest IATA figures when contacted by ZAWYA this week.
“The efficient repatriation of revenues is critical for airlines to be able to play their role as a catalyst for economic activity. Strong connectivity is an economic enabler and generates considerable economic and social benefits but socio-economic growth cannot be stimulated if the industry is being strangled and pushed into a position where air connectivity is compromised. It is in everybody’s interest to ensure that airlines are paid,” the IATA statement added.
© Zawya 2017
The IATA last year warned Egypt it risked damaging its aviation industry if it did not unblock the release of funds owed to foreign carriers, with the amount owed at the time amounting to nearly $250 million.
However, a statement from IATA sent to ZAWYA on Tuesday said Egyptian authorities had cleared the backlog of funds in recent months.
“Blocked funds continue to be a problem in a diverse group of countries. However, we do have good news from Egypt where the backlog has been cleared and repatriations have been processed with no delays for the last two months,” IATA said in a press statement.
Terrorist attacks and economic constraints had a major impact on Egypt’s economy, especially the vital tourism sector, but its outlook appears to be improving. The North African state reported a 51 percent year-on-year increase in tourist arrivals in the first quarter of 2017, according to a report issued by the Moody’s Investors Service in June. Real estate consultancy firm Colliers on Tuesday also reported that average hotel occupancy levels during the second quarter of 2017 rose 4 percent year-on-year in the capital Cairo and the outlook for the remainder of the year was high, with "the potential to return to pre-2011 levels".
While Egypt has cleared the blocked funds it has was withholding, a number of countries still owe large sums to foreign carriers, with Venezuela once again topping the list.
The Latin American country tops the 2017 list with $3.78 billion still outstanding to international airlines, followed by Angola ($477 million), Sudan ($190 million), Nigeria ($171 million) and Bangladesh ($79 million).
“Airlines are also gradually clearing their backlog in Nigeria. Unfortunately, a quick solution to the $3.8 billion of funds blocked in Venezuela looks improbable,” the IATA statement added.
Dubai's Emirates airline last year said it was "facing difficulties" repatriating funds from some African countries on the list, but it declined to comment on the latest IATA figures when contacted by ZAWYA this week.
“The efficient repatriation of revenues is critical for airlines to be able to play their role as a catalyst for economic activity. Strong connectivity is an economic enabler and generates considerable economic and social benefits but socio-economic growth cannot be stimulated if the industry is being strangled and pushed into a position where air connectivity is compromised. It is in everybody’s interest to ensure that airlines are paid,” the IATA statement added.
© Zawya 2017
