New Delhi: The Income Tax department is likely to defreeze the frozen accounts of Kingfisher Airlines, which has been hit by a major cash crunch, leading to cancellations of several flights in almost all its routes across the country.
According to sources, Kingfisher Airlines is also likely to make partial payments of Income Tax dues.
The airlines owes as much as Rs 53.8 crore for financial year 2011 to the I-T department and Rs 100 crore for financial year 2012.
Sources have also said that Kingfisher paid Rs 21 crore as tax dues till December 2011 and is committed to pay Rs 130 crore TDS liability by FY 2012 end.
The carrier is also slated to pay Rs 43 crore service tax dues by March 2012.
This comes hours after Kingfisher Airlines CEO Sanjay Aggarwal met the Directorate General of Civil Aviation (DGCA) over the cancellation of flights in the last four days.
After a two-hour meeting, DGCA chief Bharat Bhushan said, "We have a responsibility that the passengers do not suffer, and the safety of the passengers is equally important. We have taken a stock of the situation."
The KFA CEO, however, said that it would take another week for the situation to normalise. "Most of the flights cancelled in the last few days will be in action in next four to five days," Kingfisher CEO Sanjay Aggarwal said.
The DGCA also asked the Kingfisher Airlines CEO to make sure that the staff salaries were paid at the earliest. The DGCA chief said that the Kingfisher CEO assured that the salaries would be paid fully by March.
It must be noted that the Kingfisher had earlier blamed the freezing of its bank account for the cash crunch faced by it.
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