India, March 15 -- Kingfisher Airlines will scale back overseas flights to cut costs and attract funding from sceptical investors, but the Directorate General of Civil Aviation (DGCA) accused it on Wednesday of reneging on a recovery plan and British Airways said it had suspended a code-sharing pact with airline.
Cash-strapped and debt-laden, Kingfisher has slashed its operating schedule and is scrambling for financing from creditors as its losses grow in India's fiercely-competitive airline industry.
While Kingfisher drew praise from analysts for cutting overseas flights, the country's aviation regulator said the airline has reneged on a turnaround plan it had agreed to with DGCA in January. The regulator said the current situation with the airline cannot be allowed to continue for long.
Aviation minister Ajit Singh also said that the regulator will submit a report on the airline in one to two days.
Adding to Kingfisher's woes, International Airlines Group's British Airways said on Wednesday it had suspended its code-sharing agreement with Kingfisher as of last week. It did not disclose the reason.
Also on Wednesday, Vijay Amritraj resigned from the airline's board, Kingfisher said, becoming the fifth director to leave the company since April 2011. Amritraj's resignation, which Kingfisher said was due to an increase in his travel schedule and commitments, leaves the company with just four directors.
Kingfisher, in a statement, said it is "working with our bankers to realise the urgent interim working capital," adding that foreign investors have shown an interest in the carrier.
"We would like to confirm that we are curtailing our wide-body overseas operations that are bleeding heavily," the airline said on Wednesday, adding that it had already returned one Airbus A330-200 to its UK lessor as a result.
Wide-body aircraft are used by Kingfisher to fly to London, Singapore and Hong Kong. The airline provided no details on its international flights to regional destinations like Sri Lanka. Published by HT Syndication with permission from Afternoon Voice.
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