Vijay Mallya -run
Kingfisher Airlines suffered a further setback on Friday with the International Air Transport Association (IATA) going a step ahead and
barring the carrier from its billing and cargo settlement systems even as the airlines claims to have made alternate arrangements for
selling its tickets .
IATA on Wednesday had directed over 30,000 of its affiliated travel agents to immediately stop booking tickets for Kingfisher as it had failed to settle its dues since February.
FULL COVERAGE: How Kingfisher landed itself in the mess"IATA has suspended Kingfisher Airlines' participation in billing and settlement plan (BSP) and cargo accounts settlement system (CASS). The suspension was because the airline did not provide IATA with a cash deposit required to continue its participation in the BSP and CASS," an IATA official said in New Delhi.
According to industry experts, Kingfisher's suspension is expected to affect nearly 30-35 per cent of its business. Both the programmes facilitate in selling and remitting proceeds between airlines and travel and cargo agents. "The airline is still free to sell and settle directly with travel agents and freight forwarders," the IATA official said.
MUST READ: Govt to get hurt more if Kingfisher shuts down The cash-strapped airlines said it has made alternate arrangements for selling its tickets. "As a result of the recent suspension of Kingfisher Airlines from IATA's ICH (IATA clearance house) and BSP (billing and settlement) platforms, the airline has made alternate arrangements to ensure that the customers can continue to book their travel on Kingfisher, via select leading travel agents," an airline official said.
The airline also said it was unable to pay its dues to IATA because its bank accounts were seized on Wednesday by the income tax department.
MUST READ: Kingfisher denies shutdown rumours "This situation has arisen as a consequence of our bank accounts having been frozen by the tax authorities. We would like to emphasise that all our flights will continue to operate as per the schedule."
Courtesy:
Mail Today
Kingfisher Airlines owner Vijay Mallya. 
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