Foreign airlines' trapped funds result in high fares - Operator

Bankole Bernard, chairman of the International Air Transport Association's Airlines and Passengers Joint Committee and Group Managing Director/CEO of Finchglow Holdings, explains why foreign airlines' funds have been trapped and how the government can resolve the issue in this interview with FUNMI FABUNMI and LILIAN UKAGWU. What are your thoughts on foreign airlines' trapped funds, which IATA recently reported have risen to $743 million? This is a terrible situation. Certain things will be considered, a misallocation of priorities. In business, we have a choice. If the Bilateral Air Service Agreement (BASA) specifies that foreign airlines make sales in local currency, the language should be changed to foreign currency. We should be able to meet that obligation because reputation damage costs a lot of money and is one of the reasons why airlines like Emirates and Etihad Airways left the market when there could have been more. They do not want their funds to become entangled. As a result, they will move to a more profitable market, which would not have been possible if we had engaged in proper dialogue.