Ailing Kingfisher Airlines has again blamed its most recent suspension from two of the International Air Transport Association's (IATA) accounts settlement systems on the local tax authorities' freezing of its bank accounts.
"We are making all possible efforts to remedy this temporary situation," said Prakash Mirpuri, the airline's vice-president for corporate communications.
The airline said it has made alternate arrangements to ensure that customers can still book their travels through selected agents. In addition, the carrier urged its customers to book tickets through its website, call centre or ticketing offices directly.
"We would like to emphasize that all our flights will continue to operate normally as per the schedule published on the website," Mirpuri added.
The cash-strapped carrier was suspended from IATA's Biling and Settlement Plan (BSP) and Cargo Accounts Settlement System (CASS) late on 8 March when it failed to provide a cash deposit.
Being suspended from the systems means that Kingfisher Airlines will no longer be able to sell and settle their accounts with travel and cargo agents through it.
The is a major blow to the airline's revenue as most of its sales are concluded via this method.
The BSP and CASS programmes facilitate and simplify the selling, reporting and remitting procedures between airlines and agents, without the systems, Kingfisher will have to sell and settle directly with the travel agents and freight forwarders.
On 7 March, Kingfisher was suspended from IATA's Clearing House payment system because it did not settle its accounts before the deadline.
The carrier said it was working with the tax authorities to free up cash to settle its outstanding dues. India's tax department recently froze the airline's bank accounts for the fourth time.
Meanwhile, IATA said Kingfisher's suspension will be lifted when it fulfils its cash deposit requirement.
Source: Air Transport Intelligence news
