Asia Bizz: Indian carrier Kingfisher Airlines has recently announced that it has shut down its international operations. The airline officials revealed that the final overseas flight left for London on April 10, 2012.
In recent times, the airline has been facing turbulence with regards to payment of salaries to its employees. The tax authorities had frozen all the bank accounts of the carrier in the month of February 2012 for the non-payment of tax debts. But the airline was unable to pay any other bills after financial institutions refused to give them additional loans. At present, the company has a debt of around Rs. 800 million. Since the time the airline was set up, it has never announced profits.
On March 25, 2012 the flights to Colombo, Bangkok, Kathmandu and Dubai were stopped by the airline and the tax authorities had asked the airlines to handover the £7.4 million which was owed as service tax. After making the partial payment, the airline still owes money to its workers, lenders, the tax authorities and airports. At a point even the staff of the airlines had threatened that they would go on strike if they were not paid their salaries that were due since December.
The employees were paid a part of their December salaries, but they are yet to get their salaries for the year 2012.
