Egypt frustrates airlines as it fails to repatriate $291m in ticket earnings

Airlines are becoming increasingly frustrated with Egypt over the country’s inability to repatriate ticket sale earnings, the industry’s top body warned. The IATA said Friday Egypt is not doing enough to reassure carriers. “Our members... are concerned,” IATA DG Tony Tyler said. “The volume of funds stuck in the country... is steadily growing.” The central bank reportedly “addressed” the concerns of airlines in March. However, IATA says Egypt is blocking the repatriation of $291m. “We have had various meetings [with Egyptian officials]. It is very important that these commitments are followed through on,” Tyler said. Egypt is facing a dollar shortage that has deteriorated since the 2011 revolution that ousted long-term president Hosni Mubarak. Its foreign currency reserves have more than halved since the revolution to $17.01b as of the end of April as it struggles to rebuild its tourism sector, a key source for foreign currency. The EgyptAir crash into the Mediterranean in May could put further pressure on people’s appetite to travel to the country that is already strained because of turmoil, including October’s bombing of a Russian passenger jet over the Sinai. Tyler warned the restrictions on funds are putting Egypt on a “slippery slope” and that airlines could start cutting flights if they are unable to take out their earnings.<br/>