Kingfisher Airlines: New jolt for debt-hit carrier, says report

The Press Trust of India said Indian authorities had sealed airline's accounts because of non-payment of taxes.

NEW DELHI: India’s Kingfisher Airlines received a fresh jolt after federal revenue officials froze 40 bank accounts of the debt-crippled carrier, a report said on Saturday. The Press Trust of India said Indian authorities had sealed the accounts because of non-payment of taxes. “Over Thursday and Friday, we froze 40 bank accounts of Kingfisher Airlines. They failed to meet the February 29 deadline to make the (tax) payments,” service tax department commissioner SK Solanki said. “The airline owes 400 million rupees ($8.16 million) to the department,” Solanki added. The move comes after federal income tax authorities earlier froze other accounts of the struggling carrier after it failed to pay tax arrears.In addition to back taxes, Kingfisher owes suppliers, lenders and staff millions of dollars and has scrapped scores of scheduled flights with only 28 of its fleet of 64 aircraft in operation.

Published in The Express Tribune, March 4^th, 2012.