The International Air Transport Association (IATA) has “suspended Kingfisher Airlines’ participation in the IATA Clearing House (ICH)” because the carrier “did not settle their ICH account within the stipulated deadline,” the organisation announced.
The ICH enables carriers to settle interline billings “securely and efficiently” as stated on IATA website. Suspension from the ICH would mean that the carrier cannot settle transactions with other ICH members unless they deal with them directly, which seriously dents the carrier’s operations.
The cash-strapped carrier explains that it could not meet the payment deadline because their accounts have been frozen by tax authorities.
“We are working with tax authorities and expect the accounts to be unattached shortly,” the carrier stated in a release.
Meanwhile, the carrier assures passengers that it “continues to operate 200 flights to 46 domestic and international destinations. The ICH suspension does not impact our guests travelling on any Kingfisher Airlines flight or our flight schedules.”
As previously reported, the carrier has been struggling to steer its finances clear of the red and consequentially had to put its oneworld membership on hold (see story here).
For more information, visit www.flykingfisher.com