Oil companies resume fuel supply to Kingfisher Airlines

March 09, 2012 02:43
Oil companies resume fuel supply to Kingfisher Airlines

On Thursday March 8 oil companies has started supplying again fuel to Kingfisher Airlines subsequently reportedly accepting full payment from the deadlock airlines.

On Wednesday this week IATA has stopped Kingfisher Airlines from its account settlement system its all because of non-payment of fees, having a fresh blow to the airlines as it was looking for funds to lift its condition.

The IATA also barred its agents from booking any flights, seriously jeopardising the company's international bookings.

The Income-Tax department froze around 19 accounts of the airlines and is now said to be contemplating locking the UB Group accounts. It also reportedly issued a show-cause notice to the airlines management over non-payment of dues amounting to Rs 350 crore.

The I-T department, meanwhile, said it had recovered only Rs 23 crore from the KFA so far. The authorities added they will soon take a decision on attaching Kingfisher's properties.

Six Kingfisher flights at Mumbai airport were delayed due to no fuel supply on Wednesday.

Notably, the IATA had warned Kingfisher Airlines earlier as well. Kingfisher accepted that it could not make the payments that resulted in the temporary suspension, adding that it would pay the dues soon to IATA and get reinstated.

Out of 64 planes which is in fleet, right now Kingfisher Airlines is just using 28, which is really upsetting the travel plans of thousands of passengers across the country.

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