Aerospace Diary

Neelam Mathews March 31, 2012 Even as a signature campaign by Kingfisher’s unfortunate employees demanding a hearing on April 2 with no other than founder Vijay Mallya reaches a crescendo, Aersopace Diary has learnt of a tug of war happening between the government and the airline on who should close the company. Mallya is clear, we learn, the airline will be not be shut down by him even if it comes down to the minimum five needed to run a domestic carrier in India, but he isn’t averse to the government shutting it down. Infact, during a recent interview on an electronic channel he went as far to say if the government wanted to shut the airline, why didn't it. The reasons for this, we hear, are not being disclosed. Meanwhile as debtors knock on the now fragile doors of the carrier, with almost empty flights being clubbed between destinations, the 120 promised flights a day to the DGCA are not taking place. We were unable to confirm how the DGCA is viewing this default Also with ...

Neelam Mathews March 18, 2012 At the Hyderabad air show, even as the IATA DG Tony Tyler was unwilling to share what was on the agenda for discussion with airlines and government officials he was meeting in Delhi on March 16, he did say: “India is a concern on the viability…”  Aerospace Diary could not confirm what discussions were held regarding Jet Airways and BSP. Recently, it was reported that IATA was asked to deposit Jet Airways' collections from its settlement systems directly to the government to recover pending tax dues. “The Indian tax authority had served IATA with a garnishment for the amounts owed to the tax authorities by Jet Airways," IATA spokesman Albert Tjoeng said in an email to Reuters.  Speaking exclusively to Aerospace Diary, Tyler said: “We will obey the law and if legally (required), are obliged in future to do according to the law.” Kingfisher was the topic of discussion as Tyler told a group of media persons when questioned on the pullout...

Neelam Mathews March 9, 2012 A swift reply to Aerospace Diary’s questions by Kingfisher on Online Travel Agents removing the carrier from reservation websites this morning following IATAs BSP pullout, was: “We are available on the OTAs. Since the new solution has a couple of integration elements, the same will be up in a couple of hours.” And it has. Technology, obviously can be a wonderful thing. Kingfisher can be booked on major OTAs that are not using the carrier’s name. I did find, however, that Cleartrip returned KFA on its inventory. According to Manoj Chacko, Executive Vice President – Commercial; “60% of Indian aviation business is done outside of BSP. Hence the suspension does have some short term challenges, but it is being overcome and all sales processes will be near normal over the weekend.”   We are led to believe by travel agents that almost 70% of Kingfisher’s business comes from travel agents through GDSs.  The point is, efforts are being made. “We ar...

Neelam Mathews March 9, 2012 IATA has just sent Aerospace Diary this statement: IATA has suspended Kingfisher Airlines’ participation in the Billing and Settlement Plan (BSP) and Cargo Accounts Settlement System (CASS).  The suspension was because the airline did not provide IATA with a cash deposit, required to continue its participation in the BSP and CASS.  The required cash deposit was intended to ensure the airline is able to meet its financial obligations in the BSP and CASS.    The BSP and CASS programs facilitate and simplify the selling, reporting and remitting procedures between airlines and travel and cargo agents.  Suspension from the BSP and CASS means that the airline would not be able to use the BSP and CASS to settle their sales with travel and cargo agents. The airline is still free to sell and settle directly with travel agents and freight forwarders. Kingfisher’s participation in the BSP and CASS will be reinstated after the airli...

Neelam Mathews March 8, 2012     Ailing Kingfisher Airlines is working hard to get some cash to pay for the security deposit for IATAs Billing and Settlement Plan (BSP) for which the deadline is March 10, Aerospace Diary learns. If it is unable to meet the deadline, the carrier will be in a real hot soup as it can then no longer sell through agents (including online travel agents) that sell 70% of its inventory.   We also learn cash for fuel bought from HPCL will last only till tomorrow.   Kingfisher has already defaulted and been suspended for participation in the IATA Clearing House (ICH). “This is because the airline did not settle their ICH account within the stipulated deadline. Kingfisher's participation in the ICH will be reinstated after the airline fulfills the ICH requirements,” said an IATA spokesman.   ICH is for interlining payments clearances. This means now international carriers taking KFAs passengers to onward destinations will no longer offer ...