Connect with us

News

Ticket pricing: Airlines’ exchange rate aligns with FMDQ, says IATA

Published

on

The International Air Transport Association has clarified that it does not unilaterally determine the dollar-naira exchange rate used for ticket pricing by international airlines flying into Nigeria.

IATA-the global trade body representing over 290 international airlines-made the clarification against the backdrop of the recent fall in the value of the naira against the United States dollar on the international airlines’ ticketing platform.

According to the global airline body, the rate of exchange it publishes daily for the purpose of ticket pricing by international airlines flying in Nigeria is in line with the daily trading rates on the FMDQ Group Website.

As such, the group said it was not responsible for the fluctuation or stagnation of the exchange rates.

The clarification by an IATA spokesperson in Geneva read, “IATA does not unilaterally determine the exchange rate for the sale of passenger tickets in Nigeria. IATA published a daily rate of exchange (ROE) for ticket sales in Nigeria which is aligned with daily trading rates on the FMDQ Group Website. IATA does not determine the rate of exchange nor is it responsible for the fluctuation or stagnation of the rates. IATA rate of exchange for ticket sale reflects the FX trading fluctuation on the FMDQ website:2021-10-27 00:00:00=444; 2021-10-26 00:00:0=415.2; 2021-10-25 00:00:00=429; 2021-10-24 00:00:00=424.45.”

The global trade also said, “Furthermore, the fluctuation of the rate of exchange for ticket sale is not due to airline blocked funds in Nigeria. IATA and the airlines do not intend to mitigate airlines’ reduced access to foreign exchange through exchange rate fixing which is beyond their control. The resolution of the airline access to foreign exchange crisis rests with the Central Bank of Nigeria and the commercial banks.”

The shortage of dollars has forced the naira south against the United States dollar on the parallel market and other exchange rate platforms.

The developments have affected most products priced in foreign currencies including airline tickets.

Also, the inability of the CBN to sell an adequate amount of forex to foreign airlines operating in Nigeria to enable them to repatriate their ticket sales proceeds has been affecting the airlines’ operations.

Currently, foreign airlines flying into Nigeria have over $200m in unremitted ticket sales proceeds, a development that forced IATA to recently advise the Federal Government of Nigeria to address the issue urgently warning that it might hamper aviation in the country.

As things stand, the issue is still pending but there are indications that IATA is trying to meet the Nigerian government to resolve the issue amicably.

Copyright PUNCH.

All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from PUNCH.

Contact: [email protected]

Business News3 mins ago

Unlisted Stocks Trade Flat Friday Amid Low Investor Appetite

Sports9 mins ago

Gianni Infantino Claims Football’s Establishment Is Opposed To FIFA’s Plan To Shift The World Cup To A Biennial Event

News9 mins ago

VIDEO: Excitement as Don Jazzy storms NUGA event in UNILAG

Local21 mins ago

Oyo govt sanctions School for the Blind staff over sexual harassment

Business News23 mins ago

Oil Prices Crash as New COVID Variant Sparks Fears

Politics25 mins ago

JUST IN: FG lifts suspension on Emirates Airline

News31 mins ago

Currency in circulation rose by N129bn in October –CBN

News53 mins ago

Gunmen demand N35m ransom to free Ondo principal, VP, teachers

Local1 hour ago

UNILAG to host 10,000 students, 136 universities

News1 hour ago

Greed factor: Why Nigerians are losing billions to get-rich-quick investment frauds

Local1 hour ago

Nigerian Army gathers influencers for “modern warfare” on social media

News2 hours ago

How N17bn Paris Club refund landed Obiano on EFCC’s watch list

Local2 hours ago

Why snakes enter toilets and natural remedies to scare them away from homes

News2 hours ago

Copyright infringement, defamation major problems in showbiz —Candy Mamalouk

Local2 hours ago

Why Nigerian founders attracted $900 million investment: Emefiele

Politics2 hours ago

Bianca Ojukwu sends ‘important’ message to Buhari over Nnamdi Kanu

News2 hours ago

Economic plan saved 1.3 million jobs, says FG

Local3 hours ago

IPOB agitation fuelled by marginalisation; Nnamdi Kanu should be released: Bianca Ojukwu

Politics3 hours ago

CONFIRMED: Tinubu contesting for president in 2023 – elder statesman

News3 hours ago

Railway police command CP moves to eject 200 families from Lagos barracks Monday

Local21 hours ago

Netflix invites Nigerians to scriptwriting programme

Health22 hours ago

The #1 Best Holiday Food to Eat for a Flat Belly, Says Dietitian

News14 hours ago

Uganda risks losing only international airport over Chinese loan

News22 hours ago

Accountability will remain PDP’s watchword, promises Ayu

News23 hours ago

Rema faults DJ Neptune for releasing his song without permission

World15 hours ago

India: Islamic scholar says Muslims should stay away from malls, Allah dislikes them, women look at men

Entertainment19 hours ago

“Does Google read minds too?” – Reality TV star, Erica left shocked by an experience in Dubai

Entertainment21 hours ago

Naira Marley’s sister, Subomi buys herself a Mercedes Benz GLK

World22 hours ago

California County Mandates Masks for Private Thanksgiving Celebrations at Home

Business News22 hours ago

Reminiscing on the Loss of a Friend, Dreams Deferred, and Bold New Beginnings

Local11 hours ago

NDLEA arraigns two men for dealing in 789kg cannabis

Business News23 hours ago

Malawi, Mozambican Agree to Strengthen Economic Relations

Local22 hours ago

CBN gives N30 million to six students

News11 hours ago

Keyamo replies Reps, says 774,000 jobs successful, beneficiaries paid N40bn

Health21 hours ago

8 Ways To Avoid The Dreaded Thanksgiving Food Coma

Metro16 hours ago

World’s First Floating City Could Be Completed By 2025

Sports23 hours ago

Tottenham Manager Antonio Conte Is Starting To Understand The Situation At The Club

News20 hours ago

Ayade seeks to partner Britain on security, others

Local13 hours ago

Enugu has 152,243 stunted children: UNICEF

News18 hours ago

Nigeria Air: FG to float IPO, begins operations with three planes

Trending