New Delhi (dpa) – India's cash-strapped Kingfisher Airlines Ltd said Wednesday it was suspending international flights, as credit restrictions make it increasingly difficult to operate. Banks have refused to lend more to the debt-ridden carrier, and it has been excluded from the aviation industry's clearinghouse for trade deals. The airline, which operates flights domestically, to Europe and to South and South-East Asia, said it was planning to discontinue all overseas flights by April 10, the Hindu daily quoted company sources as saying. Spokesman Prakash Mirpuri said the decision “had been under consideration for some time.” Chairman Vijay Mallya earlier said the move came after the airline was suspended from the International Air Transport Association's (IATA) billing facility, a clearing house to coordinate trading between businesses in the aviation sector. The inability to use the service had hurt its international bookings, it said. Mallya said the company had asked IATA officials to restore its access to the facility. “Until then, it makes no sense to operate international flights,” he was quoted as saying by news broadcaster IANS. Mallya also met officials of the national Directorate-General of Civil Aviation Tuesday after the regulator warned that the carrier's license could be cancelled if it failed to meet financial viability conditions and safety norms. Kingfisher, one of the country's five main airlines, has failed to turn a profit since its founding in 2005. Losses have mounted over the past two years due to increased fuel costs, interest rates and competition, and lower fares. The company has already curtailed its domestic operations in recent weeks to 125 flights per day down from about 200, the Hindu report said. It has a total debt of 70 billion rupees (1.4 billion dollars) and accumulated losses of about 60 billion rupees, the report said. Several pilots have not been paid for three months, while over 50 have resigned in the last year. BM ShortURL: http://goo.gl/ycLkU Tags: Flights, India, Kingfisher, Travel Section: Latest News, South Asia, Travel
