KINGFISHER Airlines sees no end to its woes, with the latest move by IATA to suspend the debt-laden carrier from its account clearing system for not paying its dues, the second time it has happened in a month.
The suspension has severely impacted the beleaguered airline, which can no longer code-share with other operators and use interline rights to issue tickets on other carriers.
Other airlines are also increasingly wary of helping stranded Kingfisher passengers. Japan Airlines has cancelled its pro-rate agreement with Kingfisher and more airlines are likely to follow suit.
With just 28 of its 64-aircraft fleet in operation, the struggling Indian airline had to cancel many flights, adding further uncertainty to its schedules.
The Indian tax department froze Kingfisher’s bank accounts on February 29 for the fourth time, after the airline failed to pay its dues to employees, vendors and airports. The airline is currently in talks with the authorities to free its frozen bank accounts.
Kingfisher CEO, Sanjay Aggarwal, urged its pilots to “not stay away from flying duties” and has pledged to pay salaries soon without committing to a date.
While the Indian government has announced it will not use taxpayers’ money to bail out the private airline, it has made concessions by allowing airlines to import fuel, thereby avoiding hefty taxes levied on aviation fuel, as well as relaxing stringent guidelines on international flights.
State-owned Hindustan Petroleum Corp had earlier stopped fuel supply to Kingfisher but has since resumed supplies following hectic negotiations with the airline’s management.
Vijay Mallya, Kingfisher founder and chairman, had repeatedly denied shutdown rumours.
