Kingfisher Airlines, which is struggling to stay afloat, today suffered yet another blow with global airlines body International Air Transport Association (IATA) suspending it for not clearing its dues.
The ailing carrier said payments would be made as soon as tax authorities de-froze its bank accounts.
This was the second time in just over a month that the airline was suspended on the same count from the IATA Clearing House (ICH) through which airlines and related firms settle accounts for services provided by them to other such companies.
A large number of bank accounts of the beleaguered airline have been frozen by the income tax, service tax and excise and customs departments for its failure to clear dues.
"IATA has suspended Kingfisher Airlines' participation in the IATA Clearing House [ICH]. This is because the airline did not settle their ICH account within the stipulated deadline," IATA's Assistant Director (Corporate Communications) Albert Tjoeng said in a statement from Singapore.
He said, "Kingfisher's participation in the ICH will be reinstated after the airline fulfills the ICH requirements."
The airline was earlier suspended from ICH on February two but its status was restored ten days later. It has now been suspended once again, IATA sources said.
Reacting to the development, an airline spokesperson said "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."
