IATA suspends Kingfisher from 2 settlement systems | india | Hindustan Times
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IATA suspends Kingfisher from 2 settlement systems

india Updated: Mar 09, 2012 17:02 IST
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The International Air Transport Association (IATA) has suspended Kingfisher Airlines from two settlement systems with travel and cargo agents effective from Thursday night after the ailing carrier failed to provide a cash deposit.

This comes as a fresh blow for Kingfisher, which was suspended from IATA's clearing house, which settles accounts between the world's airlines, on Wednesday.

"The airline is still free to sell and settle directly with travel agents and freight forwarders," IATA spokesman Albert Tjoeng said in an email, but did not say how much cash Kingfisher had to deposit.

About 240 airlines, representing about 84% of global scheduled airline traffic, are members of IATA.

"The airline has made alternate arrangements to ensure that the customers can continue to book their travel on Kingfisher via select leading travel agents and their network of partners," Kingfisher said in a statement.

Kingfisher, which has a debt of about $1.3 billion, needs at least $400 million soon to keep flying, according to the Centre for Asia Pacific Aviation, an industry consultancy.