Countries from Angola to Venezuela owe nearly $5 billion (Dh18.4bn) in local ticket sales to international airlines including Lufthansa, Air France-KLM and Emirates as the governments struggle with currency controls.
The total amount of funds blocked by 16 countries, mainly Venezuela, Angola, Sudan, Bangladesh and Zimbabwe, has dropped 7 per cent at the end of 2017 compared to a year ago, the International Air Transport Association said. The industry body renewed calls to the governments to respect international treaties and allow foreign airlines to repatriate these unlocked revenues.
In Venezuela’s case “we do not see in the short run any solution frankly, to be realistic, but we will not give up,” Alexandre de Juniac, director general of Iata, said in a media briefing at the conclusion of the Iata annual meeting in Sydney.
Airlines have been struggling to get ticket revenues out of oil dependent countries such as Angola, Africa's second-biggest oil producer, after a 2014 collapse in crude oil prices dried up foreign reserves of dollars, euros and major currencies. In 2017, Emirates scaled back its five weekly flights to Angola's capital Luanda to three citing difficulties in repatriating funds.
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Venezuela alone owes $3.78bn to international airlines, followed by Angola where about $386 million remain blocked. Sudan is withholding $170m, followed by Bangladesh with $95m and Zimbabwe with $76m, Iata said.
Venezuela, which has more oil than Saudi Arabia and was once one of the richest economies of Latin America, is now plagued with shortages in basic goods from food to antibiotics. The sharp drop in oil prices in 2014 has led to an economic downward spiral in the country. Inflation exceeded 2,400 per cent in 2017 and would worsen in 2018, the International Monetary Fund estimated.
Mr de Juniac said a solution is unlikely soon in Venezuela, given its deepening economic crisis, but remains hopeful for progress in other countries.
“We are encouraged by the recent developments in Nigeria and Angola, and hope other states will also move quickly to address blocked funds,” he said.
Egypt has already paid in full its obligations to international airlines, while a $600m backlog in Nigeria was cleared and Angola released $120m from the peak of more than $500m it owed, Iata said.
Tips for taking the metro
- set out well ahead of time
- make sure you have at least Dh15 on you Nol card, as there could be big queues for top-up machines
- enter the right cabin. The train may be too busy to move between carriages once you're on
- don't carry too much luggage and tuck it under a seat to make room for fellow passengers
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
RESULTS
5pm: Watha Stallions Cup Handicap (PA) Dh 70,000 (Dirt) 2,000m
Winner: Dalil De Carrere, Bernardo Pinheiro (jockey), Mohamed Daggash (trainer)
5.30pm: Maiden (TB) Dh 70,000 (D) 2,000m
Winner: Miracle Maker, Xavier Ziani, Salem bin Ghadayer
6pm: Maiden (PA) Dh 70,000 (D) 1,600m
Winner: Pharitz Al Denari, Bernardo Pinheiro, Mahmood Hussain
6.30pm: Maiden (PA) Dh 70,000 (D) 1,600m
Winner: Oss, Jesus Rosales, Abdallah Al Hammadi
7pm: Handicap (PA) Dh 70,000 (D) 1,400m
Winner: ES Nahawand, Fernando Jara, Mohamed Daggash
7.30pm: Maiden (PA) Dh 70,000 (D) 1,000m
Winner: AF Almajhaz, Abdul Aziz Al Balushi, Khalifa Al Neyadi
8pm: Maiden (PA) Dh 70,000 (D) 1,000m
Winner: AF Lewaa, Bernardo Pinheiro, Qaiss Aboud.
Jebel Ali results
2pm: Handicap (PA) Dh 50,000 (Dirt) 1,400m
Winner: AF Al Moreeb, Antonio Fresu (jockey), Ernst Oertel (trainer)
2.30pm: Maiden (TB) Dh 60,000 (D) 1,400m
Winner: Shamikh, Ryan Curatolo, Nicholas Bachalard
3pm: Handicap (TB) Dh 64,000 (D) 1,600m
Winner: One Vision, Connor Beasley, Ali Rashid Al Raihe
3.30pm: Conditions (TB) Dh 100,000 (D) 1,600m
Winner: Gabr, Sam Hitchcott, Doug Watson
4pm: Handicap (TB) Dh 96,000 (D) 1,800m
Winner: Just A Penny, Sam Hitchcock, Doug Watson
4.30pm: Maiden (TB) Dh 60,000 (D) 1,600m
Winner: Torno Subito, Sam Hitchcock, Doug Watson
5pm: Handicap (TB) Dh 76,000 (D) 1,950m
Winner: Untold Secret, Jose Santiago, Salem bin Ghadayer
About Seez
Company name/date started: Seez, set up in September 2015 and the app was released in August 2017
Founder/CEO name(s): Tarek Kabrit, co-founder and chief executive, and Andrew Kabrit, co-founder and chief operating officer
Based in: Dubai, with operations also in Kuwait, Saudi Arabia and Lebanon
Sector: Search engine for car buying, selling and leasing
Size: (employees/revenue): 11; undisclosed
Stage of funding: $1.8 million in seed funding; followed by another $1.5m bridge round - in the process of closing Series A
Investors: Wamda Capital, B&Y and Phoenician Funds
Developer: Ubisoft Montreal / Ubisoft Toronto
Publisher: Ubisoft
Platforms: Playstation 4, Xbox One, Windows
Release Date: April 10
