<p>Cash-strapped Kingfisher Airlines woes compounded on Friday with the International Air Transport Association (IATA) suspending it from its billing and cargo accounts as the carrier failed to provide adequate cash deposit with the body.<br /><br /></p>.<p>This leaves the passengers with the option of booking their air ticket on Kingfisher via travel agents. The global air travel body had earlier suspended Kingfisher from the International Clearing House.<br /><br />“The suspension was because the airline did not provide IATA with a cash deposit, required to continue its participation in the billing and settlement plan (BSP) and the cargo account settlement system (CASS),” an IATA spokesperson said in a statement.<br />For an airline, which has been struggling with operations in the wake of creditors withdrawing aircraft, the latest move will only jeopardise their further operations, analysts said. <br /><br />Kingfisher, however, said it is making “all possible efforts to remedy this temporary situation arisen as a consequence of our bank accounts having been frozen by the tax authorities.”<br /><br />In a statement it said: “It has made alternate arrangements to ensure that customers can continue to book their travel on Kingfisher via select leading travel agents and their network of partners.”<br /><br />It said customers can continue to book and purchase tickets either via Kingfisher website or through any of the Kingfisher Airlines ticketing offices across India and at international locations and call centres.<br /><br />The beleaguered airline, which has a total debt of about Rs 7,057 crore and accumulated losses of about Rs 6,000 crore, also owes to the government over Rs 130 crore of income tax deducted from employee salaries.<br /><br />Aviation experts said the news of freezing of accounts may make it difficult for the airline to procure fresh funds from banks which are insisting its promoters to infuse fresh equity in the company before asking for a bank bail-out.</p>
<p>Cash-strapped Kingfisher Airlines woes compounded on Friday with the International Air Transport Association (IATA) suspending it from its billing and cargo accounts as the carrier failed to provide adequate cash deposit with the body.<br /><br /></p>.<p>This leaves the passengers with the option of booking their air ticket on Kingfisher via travel agents. The global air travel body had earlier suspended Kingfisher from the International Clearing House.<br /><br />“The suspension was because the airline did not provide IATA with a cash deposit, required to continue its participation in the billing and settlement plan (BSP) and the cargo account settlement system (CASS),” an IATA spokesperson said in a statement.<br />For an airline, which has been struggling with operations in the wake of creditors withdrawing aircraft, the latest move will only jeopardise their further operations, analysts said. <br /><br />Kingfisher, however, said it is making “all possible efforts to remedy this temporary situation arisen as a consequence of our bank accounts having been frozen by the tax authorities.”<br /><br />In a statement it said: “It has made alternate arrangements to ensure that customers can continue to book their travel on Kingfisher via select leading travel agents and their network of partners.”<br /><br />It said customers can continue to book and purchase tickets either via Kingfisher website or through any of the Kingfisher Airlines ticketing offices across India and at international locations and call centres.<br /><br />The beleaguered airline, which has a total debt of about Rs 7,057 crore and accumulated losses of about Rs 6,000 crore, also owes to the government over Rs 130 crore of income tax deducted from employee salaries.<br /><br />Aviation experts said the news of freezing of accounts may make it difficult for the airline to procure fresh funds from banks which are insisting its promoters to infuse fresh equity in the company before asking for a bank bail-out.</p>
