Airline Revenue War Between Pakistan and Bangladesh

The International Air Transport Association (IATA) has called upon the governments of Pakistan and Bangladesh to release airline revenues amounting to millions of dollars being withheld in violation of international agreements. As per the current regulations, airlines are not allowed to repatriate more than USD 720 million in total, with USD 399 million in Pakistan and USD 323 million in Bangladesh.

The timely release of these funds is critical for airlines to carry out their operations smoothly. It will help them pay for various dollar-denominated expenses, including lease agreements, spare parts, overflight fees, and fuel. By delaying the repatriation of these revenues, the governments violate international obligations outlined in bilateral agreements and increase exchange rate risks for airlines.

It is crucial to understand that the aviation industry is heavily reliant on these revenues. Any delay in releasing them can have a severe impact on airlines' financial stability, potentially leading to a domino effect on the entire aviation sector. This could make it challenging for airlines to meet their financial obligations and maintain the smooth running of their operations, underscoring the urgency of this issue.

The concerned authorities must release these withheld funds promptly. Doing so will not only honour the international agreements but also provide financial relief to the airlines, helping them to continue their services without any hindrance.