Libya is holding US$ 25 million in blocked international airline funds according to the International Air Transport Association (IATA). This puts it in the top group of countries blocking funds which includes Algeria, Chad, Gabon, Yemen and Iran.
IATA says blocked funds are revenues earned by airlines in a particular country that cannot be repatriated in US dollars due to foreign exchange controls, currency shortages, or regulatory barriers. These funds are typically generated from ticket sales, cargo services, and other commercial activities, but remain trapped in the country of sale, often for extended periods.
Airlines earn revenues in local currencies, but timely repatriation in US dollars is essential to meet dollar-denominated expenses like leasing, fuel, maintenance, and salaries. Delays and denials violate international treaties and bilateral agreements and increase exchange rate risks.
Under bilateral air service treaties, governments are obligated to allow foreign airlines to repatriate revenues from ticket and cargo sales. However, severe economic instability and strict rules imposed by the Central Bank of Libya (CBL) have heavily restricted airlines from converting their local revenues into hard currency.
EU flight ban It will be recalled that an EU flight ban still exists for Libyan carriers flying scheduled flights into Europe and EU carriers into Libya.
Current chartered flights
However, the Libyan owned and Malta-registered MedSky and Libyan Express are running chartered flights to Malta, Rome, Milano, Athens, Madrid, Dusseldorf and Paris.
