Working with Kingfisher to revoke suspension: IATA chief

Hyderabad: Apex body of global airline industry IATA is in talks with Kingfisher Airlines on the terms to reinstate the debt-ridden company into its clearing house.

The International Air Transport Association also hoped that the beleaguered airline will come back to its normal state by overcoming the current difficulties.

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"The difficulties of Kingfisher are well known...We had to suspend Kingfisher from the travel agency clearing house. It is necessary to protect the whole system. It is the system we operate on behalf of hundreds of airlines. We are now discussing with Kingfisher the terms on which we can reinstate them," IATA Director General Tony Tyler said on the sidelines of India Aviation 2012.

IATA had to suspend Kingfisher Airlines after it failed to provide IATA with a cash deposit, required to continue its participation in the Billing and Settlement Plans (BSP) and the Cargo Accounts Settlement System (CASS).

The required cash deposit was intended to ensure the airline is able to meet its financial obligations in the BSP and the CASS, an IATA spokesperson earlier said in a statement from Singapore.

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Tyler said the suspension of Kingfisher from the clearing house was not unprecedented as the airline failed to meet the obligations in terms of paying up on time.

"The suspension is automatic and happens regularly with different airlines. Kingfisher is a member of IATA. We want to help them as much as we can. I hope they will overcome," Tyler added.

Replying to a query on whether the Indian Government should intervene in Kingfisher's matters, he said it is a decision for the government to take.

However, Civil Aviation Minsiter Ajit Singh yesterday ruled out the possibility of Government bailing out the ailing airline.

Singh had said the Government will act based on a report to be submitted by the Director General of Civil Aviation on Kingfisher.

PTI