Kingfisher, IATA in talks to reinstate payment systems

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The International Air Transport Association (IATA) is in discussions with ailing Kingfisher Airlines to reinstate the carrier's access to IATA's accounts settlement systems.

"It was necessary to suspend Kingfisher to protect the whole system which we operate on behalf of hundreds of airlines," Tony Tyler, IATA's director general and chief executive, told reporters at a media roundtable at the India Aviation airshow.

He added that proposals and recommendations have been made and the association hopes the airline can be reinstated soon. However, Tyler declined to comment on how much the airline owes and when it is likely to be reinstated.

"Kingfisher is in a very difficult situation and we very much hope that they will overcome it," Tyler said, adding that the airline is not the first to be suspended from its payment systems.

IATA suspended Kingfisher from its Biling and Settlement Plan (BSP) and Cargo Accounts Settlement System (CASS) last week after the airline failed to provide a cash deposit. Being suspended from the systems means that the airline cannot sell and settle their accounts with travel and cargo agents through them.

The carrier is also suspended from IATA's clearing house payment system, which is used by hundreds of airlines to settle payment for interline agreements.