Kingfisher Airlines has had a rough enough couple of days to warrant yet another post on the topic. Yesterday, it was suspended from the IATA clearinghouse. Today, it was announced that oneworld alliance is deferring its application until it can get its financial side in order. These are massive blows to Kingfisher from which it won’t recover easily from.
The deferral of oneworld membership and the suspension from the IATA Clearing House are related, according to sources at IATA and oneworld. It appears that oneworld carriers do not want to deal with Kingfisher Airlines directly, worrying about financial risk. Therefore, they decided to delay Kingfisher’s entry into the alliance until their finances are back in order. It is unclear whether they mean that Kingfisher should rejoin the IATA Clearing House, or whether they should completely return to profitability. If the demand is the latter, chances are Kingfisher won’t be joining oneworld any time soon. If it is the former, Kingfisher’s delay might be relatively short. Sources indicate that Kingfisher will probably join between Air Berlin and Malaysia Airlines if it is accepted once again.
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From latest Kingfisher 'King Club' email...
As you may already know, over the last 18 months we have been working diligently towards integrating into the prestigious oneworld® alliance. We are now fully capable to achieve this milestone. Given our current key priorities which are centered around recapitalization of our company coupled with addressing ongoing challenges of the industry, we deliberated with oneworld management company on the timing of this alliance. I share your disappointment in stating the deferring of this alliance. I assure you that it is only a deferment and very shortly indeed we will be a part of the oneworld alliance.
On Tuesday, after canceling dozens of flights during a long holiday weekend, the airline’s executives told Indian aviation officials that they would now fly just 175 flights a day, down more than half from September, when it flew 370 flights. The airline cut flights after some of its pilots, who had not been paid since December, quit