Kingfisher suspended from IATA Clearing House
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Kingfisher suspended from IATA Clearing House
In what could spell more trouble for the cash-strapped Kingfisher Airlines it has been suspended from the clearing house of the Geneva-based International Air Transport Association.
In a statement the airline said that as a result of a recent internal system failure, certain credits did not hit their IATA Clearing House (ICH) account in time, triggering an automatic suspension. “Kingfisher would like to confirm that all its dues via ICH have been settled in full and it has absolutely no upstanding dues as of date. We are closely working with ICH and expect to see a reversal of the automatic suspension shortly,” the statement adds.
Industry sources told Business Line that the suspension will make it difficult for other airlines to accept the tickets which have been issued by Kingfisher Airlines. Globally, passengers are transferred from one airline to another to reach their final destination and the airline pay each other a fixed amount of money for the passage.
The IATA Clearing House provides a competitive, seamless secure service providing an efficient on-time settling of interline accounts between the world's airlines, airline-associated companies and travel partners. The IATA Web site points out that each week more than 350 members and participants of its clearing house settle multi-million dollar transactions. An inter-clearance agreement with the US-based Airlines Clearing House, allows for more than 450 airlines and participants to settle their accounts through this IATA service. Around 80 per cent of the annual multi-billion dollar interline transactions are settled through the netting process thus, requiring minimal movement of funds, assuring high credit and currency protection to its users.
In a statement the airline said that as a result of a recent internal system failure, certain credits did not hit their IATA Clearing House (ICH) account in time, triggering an automatic suspension. “Kingfisher would like to confirm that all its dues via ICH have been settled in full and it has absolutely no upstanding dues as of date. We are closely working with ICH and expect to see a reversal of the automatic suspension shortly,” the statement adds.
Industry sources told Business Line that the suspension will make it difficult for other airlines to accept the tickets which have been issued by Kingfisher Airlines. Globally, passengers are transferred from one airline to another to reach their final destination and the airline pay each other a fixed amount of money for the passage.
The IATA Clearing House provides a competitive, seamless secure service providing an efficient on-time settling of interline accounts between the world's airlines, airline-associated companies and travel partners. The IATA Web site points out that each week more than 350 members and participants of its clearing house settle multi-million dollar transactions. An inter-clearance agreement with the US-based Airlines Clearing House, allows for more than 450 airlines and participants to settle their accounts through this IATA service. Around 80 per cent of the annual multi-billion dollar interline transactions are settled through the netting process thus, requiring minimal movement of funds, assuring high credit and currency protection to its users.
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Every week we hear/read about a new issue with KFA.
Fuel dues and salary payments were old issues.
then came the service tax payable to the government which they defaulted.
Then the next one was when pilot's income tax was deducted from salaries but siphoned off. similar thing happened with emplyee provident fund contributed by crew.
The latest one I heard about was the withdrawal of pick up and drop for cabin and flight crew. Imagine KFA pilots travelling in their own vehichles or auto/taxi to report for flights.
Now this..
I dont want the people working there to lose their jobs, but what the hell is this company still doing in business? they seem to be messing up everything.
Mr. Mallya is dreaming if he thinks FDI in Aviation will help him solve his problems.
no foriegn company will invest in the mess that is KFA unless they get to throw out everyone running the place and rebuild it from scratch.
Fuel dues and salary payments were old issues.
then came the service tax payable to the government which they defaulted.
Then the next one was when pilot's income tax was deducted from salaries but siphoned off. similar thing happened with emplyee provident fund contributed by crew.
The latest one I heard about was the withdrawal of pick up and drop for cabin and flight crew. Imagine KFA pilots travelling in their own vehichles or auto/taxi to report for flights.
Now this..
I dont want the people working there to lose their jobs, but what the hell is this company still doing in business? they seem to be messing up everything.
Mr. Mallya is dreaming if he thinks FDI in Aviation will help him solve his problems.
no foriegn company will invest in the mess that is KFA unless they get to throw out everyone running the place and rebuild it from scratch.
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It's a shame that they have not lost their economic authority to operate.
I realize the the folks stayed on with the hope of being paid. But that ship has sailed. Everyone's salary is going into the operation of VJ's private A-319. That is out and out criminal.
While more of an embarrasment to the owners, in some parts of the world, a mechanic's lean can be obtained, and assets put on hold. Stickers from legal authorites are put on prominent assets too
. Leans are not removed until employees have been paid. Eventually, leasing companies will be able to repo their aircraft and other assets with submission of proper documentation.
I realize the the folks stayed on with the hope of being paid. But that ship has sailed. Everyone's salary is going into the operation of VJ's private A-319. That is out and out criminal.
While more of an embarrasment to the owners, in some parts of the world, a mechanic's lean can be obtained, and assets put on hold. Stickers from legal authorites are put on prominent assets too
. Leans are not removed until employees have been paid. Eventually, leasing companies will be able to repo their aircraft and other assets with submission of proper documentation.
