Kingfisher suspended from IATA Clearing House
India’s beleaguered Kingfisher Airlines - which has not made a profit since its inception in May 2005 - has been suspended by the International Air Transport Association (IATA) from its accounts settlement system effective 7 March for non-payment of dues.
March 8, 2012
India’s beleaguered Kingfisher Airlines – which has not made a profit since its inception in May 2005 – has been suspended by the International Air Transport Association (IATA) from its accounts settlement system effective 7 March for non-payment of dues.
“IATA has suspended Kingfisher Airlines’ participation in the IATA Clearing House (ICH). This is because the airline did not settle their ICH account within the stipulated deadline,” IATA regional spokeman based in Singapore Albert Tjoeng said in a statement.
He said, “Kingfisher’s participation in the ICH will be reinstated after the airline fulfills the ICH requirements.” The cash-strapped carrier was earlier suspended on 2 February and its status restored 10 days later. The bank accounts of the airline, which is struggling to stay afloat, have been frozen by the income tax, service tax and excise and customs departments for failing to pay dues. The airline, which has a debt of about US$1.3 billion, needs at least $400 million to keep flying, according to the Centre for Asia Pacific Aviation.
Kingfisher last month also delayed joining the global airlines’ grouping ‘oneworld’ due to its precarious financial position. It had been slated to formally join the airline alliance on 10 February 10.