Emirates slashes Lagos flight operations over $85m stuck funds \ stacker news ~bitcoin

pull down to refresh

0 new comment

0 sats \ 1 reply \ @KenyaCoin OP 1 Aug 2022

Fortunately for Emirates, they have already begun preparations for such a period of time:

UAE's largest airline, Emirates, plans to accept bitcoin for payment | Arab News #28006 https://www.arabnews.com/node/2079876/business-economy

0 new comment

0 sats \ 0 replies \ @KenyaCoin OP 1 Aug 2022

Could this difficulty in repatriation of funds be the catalyst that results in airlines being the first multinationals to reject the national fiat currency of the countries they serve?

0 new comment

0 sats \ 3 replies \ @KenyaCoin OP 1 Aug 2022

The carrier informed that its 11 weekly flights into Lagos shall be reduced to seven, effective August 15, 2022, should the forex liquidity crisis persist.

The International Air Transport Association (IATA), the clearing house for over 280 airlines globally, earlier raised the alarm over a steady rise in the number of unrepatriated funds in Nigeria and other countries.

Emirates, in a memo signed by its head of international affairs, Sheikh Majid Al Mualla, said that they had been constrained to slash frequency to mitigate the continued losses of Emirates on account of its funds stranded in Nigeria.

Al Mualla noted that as of July 2022, Emirates had $85m of funds awaiting repatriation from Nigeria. The figure has been rising by more than $10 million every month.

The airline noted that attempts to stem part of the losses were made, by proposing to pay for fuel in Nigeria in local currency, but the request was declined, by the supplier.

“This means that not only are Emirates’ revenues accumulating, we also have to send hard currency into Nigeria to sustain our operation. Meanwhile, our revenues are out of reach, and not even earning credit interest.

0 new comment

0 sats \ 1 reply \ @KenyaCoin OP 1 Aug 2022

Here's another article on the topic:

It is really having an impact on the airlines and the recovery of the market as well because airlines will be reluctant to bring capacity into markets where they can’t repatriate their money.

Airlines are looking to recover their money and they are not going to put their funds into markets that they have no confidence in. I think this is a significant factor against recovery in the continent.

Withheld $1bn foreign airlines’ funds frustrating African market recovery –Walsh https://punchng.com/withheld-1bn-foreign-airlines-funds-frustrating-african-market-recovery-walsh/

0 new comment

0 sats \ 0 replies \ @KenyaCoin OP 1 Aug 2022

And, an article from Reuters:

IATA says $1 billion of revenue belonging to foreign airlines is being withheld across Africa, although Nigeria is the only country where the value of blocked funds has risen.

The $450 million, the largest amount withheld by any African nation, in May was 12.5% higher than the previous month.

Algeria, Ethiopia and Zimbabwe, who combined are withholding $271 million from foreign airlines, in May marginally paid down what they owed. Eritrea was unchanged at $75 million, IATA said.

Nigeria blocking repatriation of $450 million in foreign airline revenue, IATA says https://www.reuters.com/world/africa/nigeria-blocking-repatriation-450-mln-foreign-airline-revenue-iata-says-2022-06-19/