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Fri, Mar 09, 2012

Kingfisher Airlines Faces Fuel Cutoff

Largest Supplier Has Stopped Refueling The Airline's Aircraft

Hindustan Petroleum Corporation Ltd., the largest supplier of fuel to India's Kingfisher Airlines, has stopped refueling the airline's aircraft due to non-payment. The move resulted in the cancellation of six flights to Bombay Wednesday.

The Economic Times of India reports that Kingfisher is behind on its fuel payments to the tune of millions of dollars, and had not been paying its daily fuel bills. Another minor supplier, Indian Oil Corporation, reportedly is continuing to sell small amounts of fuel to the airline on a cash basis.

The IATA, which operates a clearing house for airlines to settle accounts with other businesses, has responded by suspending Kingfisher from the body for non-payment of its fuel bill. Kingfisher officials said the bills would be paid as soon as tax authorities released its accounts, which have been frozen.

FMI: www.iata.org

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