Aviation Group overthrows FG on trapped forex

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The The Aviation Security Roundtable Initiative has expressed dissatisfaction with the way the federal government handles funds accumulated by foreign airlines in the country.

In a statement released on Friday, the ART said:

“The Aviation Security Roundtable Initiative (ART) is appalled at the appalling management of the accumulated funds of foreign airlines trapped in our banks, due to the non-allocation of foreign currency to these airlines.

“In all bilateral air services agreements, one article of the agreement – revenue transfer – clearly stipulates that each designated airline has the right to convert and remit to its country on request, local receipts exceeding the sums disbursed conversion and remittance will be permitted without delay in accordance with applicable exchange regulations.

“International trade is bound by agreements that are sacrosanct and respected. Nigeria cannot help but crave the attention of investors in our industry.

“It is important to clarify that foreign airlines sold these tickets at the official IATA rate and cannot be expected to go to the parallel market to source, convert and redeliver. , as some quarters have said, the central bank should do what is necessary as stipulated in the BASA agreements.

“These funds should have been paid at the official rate on the date of the sale as soon as the airlines obtain clearance after paying all local obligations, including taxes.

“The damage our action has done to Nigeria’s image as an investment-friendly nation is extensive, as citizens face high fares, reduced capacity and limited travel options, which are will worsen if we continue on this trajectory.

“We found ourselves in this unenviable situation because we lack the ability to compete, which would have reduced the volume of remittances.

“The unborn child Air Nigeria cannot produce this capability no matter what funds are allocated but through an aggregate process of developing our industry to produce vibrant national carriers who will be courted for commercial partnerships who are the provider of successful international air operations.

“We are also of the opinion that to start this process, a functional and credible data collection methodology for the industry is a necessity. We can’t keep blowing hot air without verifiable data.

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