Airlines face overflight payment risks as planes divert over Afghanistan

Airlines are turning to a network of third parties to pay fees to Afghan authorities as more planes use the country's airspace, increasing the risk of legal disputes and money laundering, according to pilots, aviation executives and lawyers. In the last year more airlines have started flying over Afghanistan as conflict in the Middle East widened and as aviation regulators softened their stance on using Afghan airspace. The Taliban says publicly that this has led to a surge in overflight payments - fees that countries typically charge airlines for navigation services in their airspace. However, the process of making these payments to the Taliban-run aviation authorities is complicated by the freezing of Afghanistan's government bank accounts overseas and Western sanctions on Taliban leaders. The challenges airlines face making overflight payments to Afghanistan, including a reliance on intermediaries and a lack of invoices, are detailed here for the first time. Before the Taliban came to power in 2021, the IATA industry group collected overflight charges on behalf of Afghanistan's aviation authority. IATA told Reuters that it ceased this service in September 2021, leaving millions of dollars in charges collected for the previous Afghan government frozen in its accounts. Airlines and private jet operators have instead turned to third-party intermediaries, known as trip support firms, to process payments to the Afghanistan Civil Aviation Authority, according to six people familiar with the process, including pilots, airline officials, and third-party payment firms.<br/>