IATA suspends Kingfisher Airlines from platforms
The International Air Transport Association (IATA) has announced its decision to suspend India's cash-strapped private carrier Kingfisher Airlines from additional platforms for non-payment of dues.
The move comes after the suspension of the airlines from a clearing system a few days ago. IATA had suspended it from its Clearing House on Wednesday.
The suspension of the airlines from platforms would make it difficult to make passenger and cargo bookings through agents. Kingfisher has said that it has made alternative arrangements for the services and bookings. IATA said that the company is suspended from using its Billing and Settlement Plan (BSP) and Cargo Accounts Settlement System (CASS).
The BSP and the CASS systems makes it easier for different airlines, travel agents and cargo agents to sell, report and remit their earnings. According to IATA, the airline will not be able to use these platforms to settle its sales and bookings with IATA-recognised travel and cargo agents.
"The suspension is because the airline does not provide the IATA with a cash deposit, required to continue its participation in the BSP and the CASS. The required cash deposit is intended to ensure the airline is able to meet its financial obligations in the BSP and the CASS," an IATA spokesperson said in a statement.
The company said that it was unable to clear dues because the tax authorities in India froze its accounts.