Kingfisher cuts flights, DGCA probes

Mumbai, Feb 19 (IBNS) Cash strapped Kingfisher Airlines has called off 32 fights a day for at least four days beginning Sunday amid reports that it stopped its operations in Kolkata even as the Directorate General of Civil Aviation (DGCA) started a probe into the cancellations.

The loss-making airline owned by liquor baron Vijay Mallya has been quoted saying in a statement issued Saturday night that the "flight disruptions were owing to certain unexpected incidents like bird hits which rendered its aircraft out of service", while it admitted that its bank accounts have been frozen by the tax authorities.

The third largest airline company of India said it is curtailing operations over next four days, but would restore the normal schedule soon.

The cancellations caused immense hardship for passengers booked on the flights.

At least 16 flights were cancelled from Mumbai on Sunday, reports said.

However, Kingfisher has denied many of the reports.

In a statement, it said: "We would like to categorically state that we have not shut any stations nor do we have any intention of doing so.

"Admittedly there have been flight disruptions since yesterday which will continue for four days due to unexpected events including bird strikes which rendered aircraft out of service. We, therefore could only operate 208 daily flights," the statement said.

"The speculative queries that we are reducing our operating schedule from 240 flights a day are ill-founded as we will operate the full schedule on our booking system within the next 4 days," said the spokesperson of the company.

Kingfisher said there have been queries on whether they have been selling low fares.

"We cannot possibly understand the logic or motivation behind such a question as we, ourselves, announced that we intend focussing on the full service segment where our yields are higher.

"This low fare question was initially attributed to Air India and it seems to be Kingfisher´s turn now to respond to questions from vested interests."

"We confirm that our Bank accounts were attached by the tax authorities. However, this has happened in the past not just to us but also to Air India. We have resolved issues before and will do so again," the statement said.

"We have had a good meeting with our consortium of Banks who have accepted, in principle, the viability study prepared by SBI Capital markets and independent consultants. Our request for additional working capital has been acknowledged by the consortium and is subject to individual bank approvals," the statement added.