Kingfisher crisis worsens, oil firms stop fuel supply
Kingfisher crisis worsens, oil firms stop fuel supply
Oil companies have stopped fuel supply to crisis-hit Kingfisher Airlines due to non-payment of dues.

Mumbai: The list of woes for Kingfisher Airlines has become longer. Oil companies have stopped fuel supply to the crisis-hit airlines due to non-payment of dues. Sources said negotiations were on.

Six Kingfisher flights at Mumbai airport were delayed due to no fuel supply on Wednesday.

This came on a day when the International Air Transport Association (IATA) suspended Kingfisher Airlines. It means that the international bookings of the carrier will be badly hit.

However, according to sources, negotiations between the IATA and the Kingfisher Airlines are under process.

Notably, the IATA had warned Kingfisher Airlines earlier as well.

Kingfisher accepted that it could not make the payments that resulted in the temporary suspension, adding that it would pay the dues soon to IATA and get reinstated.

Meanwhile, sources said that the Income-Tax Department has also issued a show-cause notice to the airlines management over non-payment of dues amounting to Rs 350 crore.

Earlier on Wednesday, the I-T Department freezed 19 more accounts of the Kingfisher Airlines. Reports said that the department had recovered only Rs 23 crore so far and the authorities would soon take a decision on attaching Kingfisher's properties. It is likely To freeze UB Group Accounts as well.

The KFA management, however, is making all efforts to get its bank account unfrozen and co-operating with the Income Tax Department over its pending issues, to ensure timely payment of salaries, start further recoveries of its aircraft and resume normalcy in operations, the spokesperson said.

In the past few weeks, the cash-strapped KFA's flight schedules were seriously affected on account of its pending problems with various government departments.

What's your reaction?

Comments

https://sharpss.com/assets/images/user-avatar-s.jpg

0 comment

Write the first comment for this!