Airlines’ trapped $464m: Aviation safety group asks FG to comply with provisions of BASA

The Aviation Safety Round Table Initiative (ART) has asked the federal government to comply with the provisions of the bilateral air services agreement (BASA) as regards foreign airlines’ $464 million revenue trapped in Nigeria.

Olumide Ohunayo, assistant secretary-general of ART, said this in a statement on Friday.

BASA is an air transport agreement between two countries that allows designated airlines to operate commercial flights, covering transportation of passengers and cargoes.

Ohunayo said the agreement makes provision for the repatriation of revenue earned by foreign airlines, and he asked the government to “do the needful”.

“In all bilateral air services agreement an article in the agreement — transfer of earnings — clearly states that ‘each designated airline shall have the right to convert and remit to its country on demand, local revenues in excess of sums locally disbursed. Conversion and remittance shall be permitted without delay in accordance with the prevailing foreign exchange regulations’,” he said.

“International trade is binded by agreements which are sacrosanct and respected. Nigeria cannot do otherwise if we crave the attention of investors in our industry.

“It’s important to state 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 remit as opined in some quarters, the central bank should do the needful as enshrined in the BASA agreements.”

Ohunayo said the funds should have been remitted at the official rate on date of sale immediately the airlines got clearance after paying all the local obligations, including taxes.

Nigeria’s aviation sector could soon witness the dearth of foreign airlines’ who are already taking stringent measures against the market in attempts to recover the funds which rose to $464 million in July.