Kingfisher Airlines crippled as a/cs attached for tax dues

Uncertainty has again gripped Kingfisher passengers with the airline's crisis worsening after tax authorities late last week attached its bank accounts over non-payment of tax deducted at source (TDS). While this latest account attachment has crippled the almost bankrupt airline's cash flow, the fact that an aircraft suffered a bird hit and another had a cracked windshield on Friday further brought down its pruned operational fleet.
As a result, airport sources said one-third of its reduced daily schedule of 240 flights has been getting affected since Friday, leaving passengers in the lurch with the last-minute cancellations. Some bases like Kolkata were particularly hit as some airline ground staff - which has been unpaid for months - refused to work and flights got hit. Sources say similar threats of no-pay-no-work from employees and airport operators from many other places like Lucknow, Patna, Bhubaneswar, Srinagar and Hyderabad may force the airline to shut down operations from some bases. Even some international fights of the airline may get affected.
19/02/12 Times of India

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Categories: Kingfisher Feb 2012