Kingfisher says flight cuts due to frozen bank accounts

NEW DELHI Mon Feb 20, 2012 6:15pm IST

A passenger aircraft of Kingfisher Airlines is seen in Hyderabad October 15, 2008. REUTERS/Krishnendu Halder/Files

A passenger aircraft of Kingfisher Airlines is seen in Hyderabad October 15, 2008.

Credit: Reuters/Krishnendu Halder/Files

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NEW DELHI (Reuters) - Kingfisher Airlines(KING.NS) said it was forced to cancel some flights in recent days because tax authorities had frozen its bank accounts, hurting its ability to make operational payments.

"We are in dialogue with the tax authorities to agree a payment plan and get the bank accounts unfrozen at the earliest," Kingfisher said in a statement.

Earlier on Monday, The Directorate General of Civil Aviation (DGCA) summoned top executives of Kingfisher to explain the large number of flight cancellations since Saturday, even as the aviation minister ruled out providing any aid to the loss-making carrier.

(Read the main story -- Kingfisher woes mount as govt rules out bailout, click here).

(Reporting by Anurag Kotoky; Editing by Aradhana Aravindan)

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