In an another blow for debt-laden Kingfisher Airlines (KFA), a majority of travel agents have stopped selling its tickets after the International Air Transport Association (IATA) suspended the airline from the Billing and Settlement Plan and Cargo Accounts Settlement System.
The action came less than 48-hours after IATA suspended KFA from participation in the IATA Clearing House for the second time in less than two months. “The suspension was because the airline did not provide IATA with a cash deposit,” an IATA spokesperson said.
Travel agents said KFA had stopped offering refunds for cancellations and wasn’t allowing passengers to reschedule tickets. “KFA bookings have fallen drastically as passengers are not sure if flights will take off,” said Rajji Rai, president of Travel Agents Association of India.
“The airline has made alternate arrangements to ensure that customers can continue to book their travel on Kingfisher, via select leading travel agents and their network of partners,” KFA said. It blamed the situation on its bank accounts being frozen by the tax authorities.