The International Air Transport Association (IATA) has suspended Kingfisher Airlines from its Biling and Settlement Plan (BSP) and Cargo Accounts Settlement System (CASS), after the ailing airline failed to provide a cash deposit.

"The required cash deposit was intended to ensure the airline is able to meet its financial obligations in the BSP and CASS," said an IATA spokesman, who added that the suspension was implemented late on 8 March.

Being suspended from the systems means that Kingfisher Airlines will no longer be able to sell and settle their accounts with travel and cargo agents through it.

Flightglobal Pro understands that Kingfisher sells the majority of their inventory using this method.

Kingfisher A330 web
© FlyPHANUK on AirSpace Images

The BSP and CASS programmes facilitate and simplify the selling, reporting and remitting procedures between airlines and the agents. Without the systems, the airline will have to sell and settle directly with the travel agents and freight forwarders, IATA said.

With the suspension, Kingfisher's revenue will likely suffer a big hit.

In addition, the suspension comes a day after IATA suspended the carrier from its Clearing House payment system.

The Clearing House system is used by hundreds of airlines to settle payments for interline agreements and around 80% of interline transactions are settled through it.

"Kingfisher's participation in the BSP and CASS will be reinstated after the airline fulfils the cash despoit requirement," IATA added.

Source: Air Transport Intelligence news