MUMBAI: In a double whammy for Vijay Mallya-promoted Kingfisher AirlinesBSE -4.91 %, the International Air Transport Association (IATA), a body of the world's commercial airlines, informed KingfisherBSE -4.91 % of terminating its membership from the body if the airline fails to take to the skies again, people in the direct know of the matter said.
IATA's move comes close on the heels of the lenders of the debt-laden airline deciding to recall loans from the airline, which has been defaulting on interest for over six months. What prompted the airline body to take cognisance of the matter is the fact that Kingfisher's IATA Operational Safety Audit (IOSA) is about to expire within this month.
According to a source, the airline has not made any effort to keep the audit ongoing (as it is not flying), thus initiating this move by IATA.
Airline companies have to undertake an IOSA audit, which has a validity of two years. This audit evaluates operational and control systems of the airline and is mandatory for airlines that are IATA members that fly international routes and those airlines that are part of any alliances.
"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," said a source, who did not wish to be identified. IATA declined to comment.
"Everybody could see this coming. The issue will get escalated because of the challenges that Kingfisher is facing with its lenders," he added.
In a letter written in the first week of February, IATA wrote to Kingfisher an advance intimation and Kingfisher has not responded to this letter till now.
Kingfisher can again be a member if it fulfils the conditions laid down by IATA and flies again. Kingfisher technically can be an IATA member till March 31 this year but without an IOSA audit, this membership does not hold ground.
http://economictimes.indiatimes.com/news/news-by-industry/transportation/airlines-/-aviation/kingfisher-airlines-to-lose-international-air-transport-association-membership/articleshow/18490687.cms
IATA's move comes close on the heels of the lenders of the debt-laden airline deciding to recall loans from the airline, which has been defaulting on interest for over six months. What prompted the airline body to take cognisance of the matter is the fact that Kingfisher's IATA Operational Safety Audit (IOSA) is about to expire within this month.
According to a source, the airline has not made any effort to keep the audit ongoing (as it is not flying), thus initiating this move by IATA.
Airline companies have to undertake an IOSA audit, which has a validity of two years. This audit evaluates operational and control systems of the airline and is mandatory for airlines that are IATA members that fly international routes and those airlines that are part of any alliances.
"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," said a source, who did not wish to be identified. IATA declined to comment.
"Everybody could see this coming. The issue will get escalated because of the challenges that Kingfisher is facing with its lenders," he added.
In a letter written in the first week of February, IATA wrote to Kingfisher an advance intimation and Kingfisher has not responded to this letter till now.
Kingfisher can again be a member if it fulfils the conditions laid down by IATA and flies again. Kingfisher technically can be an IATA member till March 31 this year but without an IOSA audit, this membership does not hold ground.
http://economictimes.indiatimes.com/news/news-by-industry/transportation/airlines-/-aviation/kingfisher-airlines-to-lose-international-air-transport-association-membership/articleshow/18490687.cms
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