After weeks and weeks of bad news for Kingfisher, some good news has finally arrived. The IATA announced today that Kingfisher Airlines has been reinstated into its clearing house. This news comes a little over a week after Kingfisher’s membership was suspended
Kingfisher’s financial woes have
on the blog, so I won’t go into detail about it.. However, this temporary suspension has had serious consequences for Kingfisher. Its entry to oneworld was put on hold because of this suspension – being a member in good standing of the IATA Clearing House is a contractually required prerequisite to alliance membership. Even after being reinstated, Kingfisher’s entry will be pushed back for months, if it happens at all.
Kingfisher also had trouble with bilateral interline agreements due to the IATA Clearing House issue. Cathay Pacific, Korean Air, and Dragonair all terminated their bilateral interline agreements, leaving passengers stranded and leaving Kingfisher in a bad position. Kingfisher got a lot of bad press for these issues in the Indian media as well. Cathay Pacific’s termination in particular is a massive blow to Kingfisher since Cathay will be a major alliance partner of Kingfisher once (if) they join oneworld.
Hopefully this good news is a sign of Kingfisher turning around and becoming profitable. I don’t have my hopes up though…