Mumbai: Kingfisher Airlines, the Indian carrier seeking new funds after losses, cut flights after the tax office froze the company's bank accounts affecting the airline's ability to make payments.
"The prime reason for the current disruption in our flight schedules is the sudden attachment of our bank accounts by the" income tax department, the Bengaluru-based company said in an e-mailed statement.
The carrier, controlled by billionaire Vijay Mallya, said it's in talks with tax authorities to agree on a payment plan and "get the bank accounts unfrozen at the earliest."
Kingfisher said it cut about 13 per cent of flights after bird strikes and other "unexpected events" forced airplanes out of service. It said it will submit to India's aviation regulator a plan to restore the full schedule. The groundings following damage to engines after they sucked in birds may also reflect a shortage of power plants cited by the regulator last month. "If you've got a spare engine that's a one-to-two day problem," said Neil Hansford, chairman of Strategic Aviation Solutions, an adviser to airlines based in Port Stephens, Australia.
Cutting flights may also cause costs as the carrier will have to find other flights for passengers or refund them, he said.
As many as 32 daily flights were cancelled starting February 17, Kingfisher said. The carrier plans to resume its full schedule of 240 flights a day this week, it said at the time.
