New Delhi: On Wednesday, the airline was suspended from the International Clearing House (ICH) of the global International Air Transport Association for failing to meet its financial dues on time.
Even as the global air travel body halted sales of Kingfisher tickets by member airlines, the Airports Authority of India asked the airline to furnish corporate guarantees or face action, including stoppage of service.
Meanwhile, the airline's shares crashed by five per cent on the BSE, after rumours that the I-T Department had frozen 19 accounts of the company for non-payment of dues.
While the I-T action was not corroborated by the Department, IATA confirmed Kingfisher's suspension in a statement.
This has happened for the second time in two months for the airline. Earlier in February, it was suspended from the IATA ICH for failing to settle its dues. “Due to the accounts getting attached by the tax authorities, we were not able to make a payment to ICH which resulted in a temporary suspension. We are working with the tax authorities and expect the accounts to be un-attached shortly. As soon as this is done, we will pay our dues to IATA and get reinstated,” the airline said in a statement.
07/03/12 Business Line
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