Kingfisher Airlines on Monday was forced to scrap some flights as several
pilots failed to show up for work due to
delay in salary payment pushing the
struggling airline into further turbulence.
The airline said it was operating about 80 per cent of its flights implying that only 160 flights are being flown, down from 400 six months ago.
FULL COVERAGE: How Kingfisher got itself into this mess Many of Kingfisher's pilots called in sick at various places around the country to protest against delayed salary payment.
Kingfisher has been struggling to continue its normal operations as a heavy debt burden, soaring jet fuel costs, and low fares in the face of stiff competition have led to mounting losses.
MUST READ: Kingfisher re-shuffles 30 flights The carrier was suspended from three settlement systems of the International Air Transport Association (IATA) last week hurting the airline's ability to deal with global airlines and travel agents.
"Flight loads have reduced because of our limited distribution ability caused by the IATA suspension," Kingfisher said in a statement on Monday.
MUST READ: Govt to hurt more if Kingfisher shuts down "This situation has arisen as a consequence of our bank accounts having been frozen by the tax authorities. We are making all possible efforts to remedy this temporary situation," it said. The airline's bank accounts were frozen last month over outstanding tax dues.
Its lessors have started cancelling leases for planes, and aircraft Kingfisher owns are mostly pledged with lenders. An uncertain future and delayed salaries have also driven away about 300 pilots.
The revenue department attached accounts of Jet Airways maintained by IATA for non-payment of service tax dues. "We have frozen IATA accounts of Jet Airways for delay in payment of service tax dues worth `69 crore for January and February," a finance ministry source said.
Courtesy:
Mail Today
An empty Kingfisher Airlines counter at Mumbai Airport. 
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