IATA suspends Kingfisher ticket sales

Right after the Income Tax department on Wednesday froze 19 more accounts of debt-laden Kingfisher Airlines, TV reports say IATA, the International Air Transport Association has suspended the airline’s ticket sales .However, negotiations between the IATA and Kingfisher Airlines are under process.

According to a CNBC-TV18 report, the department has recovered only Rs 23 crore so far and the taxmen will soon take a decision on attaching Kingfisher’s properties. It is also likely to freeze UB Group accounts. The tax department has said that TDS dues pending are Rs 300 crore. Reacting to the news, shares of Kingfisher plunged 6.8 percent and is currently trading at Rs 20.8

[caption id=“attachment_237472” align=“alignleft” width=“380” caption=“Kingfisher Airlines Chairman Vijay Mallya l is clearly in a mess. Reuters”]  [/caption]

The KFA management 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.

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Earlier, the service department had frozen 44 accounts of Kingfisher on account of delays in clearing its dues. Moreover, yesterday Federal Bank declared its Rs 90 crore loan to Kingfisher Airlines as a non-performing asset.

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. Some pilots had recently refused to operate flights in protest against non-payment of salaries for the last three months despite several promises made by the management.