The cash-strapped Kingfisher Airlines, which was promoted by Vijay
Mallya, is in trouble again. The International Air Transport Association
(IATA), which is an association of the world's commercial airlines, has
informed KFA that they are thinking to terminate its membership from the body.
A source from the IATA said that they are disappointed with the KFA, and they
might take strong decision of terminating KFA from the body, if it fails to
start operations in near future.
Kingfisher Airlines is already in the sea of debt, and its promoters are
finding difficulties to reduce it either. The sad part is loan has been
defaulting on interest for over six months, and the condition of the airlines
is now at its worst. The added trouble factor is that Kingfisher's IATA
Operational Safety Audit (IOSA) is about to expire within February, 2013. That
is the reason the airline body is likely to take proper attention of the
overall matter.
It has to be mentioned here that the KFA has not shown any interest of
keeping the audit ongoing, as its flights were not flying in the due time. As a
result of that this move of the airline body IATA initiated, according to a
source.
We
have to understand that every single airline companies have to follow some
rules and regulations, and IOSA is one of them. Basically the Airline Companies
have to undertake the IOSA audit, which has come with a validity of two years.
Generally this audit evaluates control systems and operational of the airline.
This audit is a mandatory process for all the airlines, which are the members
of IATA, especially those airlines, which use international route of flying or
which are part of any alliances.
An
unidentified (pun intended) source reveled, "Kingfisher does not have a
valid air operating permit and is not current on its IOSA audit as it is not
flying anymore and this is the reason why IATA would look at termination of
membership as a progression," Though the airline body IATA declined to
comment on this matter while contacted.
On
the serious note all the market experts could see this coming long ago.
Kingfisher is having a lot of issues with its lenders, and to overcome these
challenges will not be a cake walk for the airline company, and as matter of
fact the issue will get escalated with time.
Eventually
IATA had written a letter to KFA in the first week of February, 2013. In that
letter the body informed the Indian airline to take quick action on the audit
process, but Kingfisher has not responded to this letter till now as per
reliable sources.
To
become the IATA member again will be an uphill task for KFA considering the
present scenario. For that it will have to fulfill all the conditions laid down
by IATA. After that it can file again to the body. On the technical ground KFA
can be a proud member of IATA till March 31, 2013, without an IOSA audit
clearance. It is quite obvious that these types of memberships do not hold
proper ground globally.
We
should know that IATA had already moved to restrict Kingfisher Airlines from
the clearance system on account of non-payment of dues in March, 2012. Now we
will have to wait to see what the future of this airline is.
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