The IATA, representing a vast majority of global air traffic, is urging Bangladesh to release these funds immediately. They argue that this situation violates international agreements and hinders airlines’ ability to operate efficiently.
The issue seems to stem from a shortage of US dollars in Bangladesh. This makes it difficult for airlines to repatriate their earnings, which they need to cover expenses like fuel and aircraft parts. While Bangladesh has standardized processes for such transactions, the central bank needs to prioritize access to foreign exchange for the aviation sector, suggests IATA.
The consequences of this situation are far-reaching. Airlines are reportedly refusing to sell tickets directly to local travel agencies, fearing they won’t be able to access their revenue. Instead, they’re selling tickets through overseas online agencies, which often charge higher prices. This ultimately hurts Bangladeshi passengers, especially migrant workers, who rely on affordable travel options.
Aviation experts warn that this situation could severely impact Bangladesh’s aviation sector. Not only are passengers facing higher costs, but it could also discourage airlines from operating in the country. The country’s image is also taking a hit, as it’s seen as unreliable for financial transactions.
Efforts are underway to resolve this issue. Bangladesh’s Civil Aviation Authority has requested intervention from the central bank, but a solution remains elusive.