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Exclusive-Airlines face overflight payment risks as planes divert over Afghanistan
FILE PHOTO: FILE PHOTO: FILE PHOTO: Taliban members celebrate on the second anniversary of the fall of Kabul on a street near the US embassy in Kabul · Reuters

By Charlotte Greenfield, Federico Maccioni, Joanna Plucinska and Lisa Barrington

DUBAI/KABUL/LONDON (Reuters) - 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 International Air Transport Association 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.

Some third-party permit specialists use additional intermediaries - primarily based in the United Arab Emirates - to facilitate payments to the ACAA.

This has added to the complexity of making payments to Afghanistan, and, according to lawyers and sanctions experts, could pose legal and financial risks for the industry.

For instance, several Western trip support firms have never received an invoice for overflight fees from Afghan authorities, making it near-impossible to make payments, said Jon Braid, who owns Jet Team, a British-based trip support company.

"The biggest difficulty is basically finding a way to pay the bills ... no one sent us a bill yet," Braid said.

The Taliban did not respond to a request for comment.

According to flight tracking data, major airlines which have started using Afghan airspace over the last year include Lufthansa, Air Baltic, TUI, KLM, British Airways, Singapore Airlines, China Airlines, EVA Air, Air India and Vietnam Airlines.