IATA suspends Cox & Kings’ license for selling tickets
The International Air Transport Association (lATA) has suspended the license of Cox & Kings for selling tickets as the company continues to grapple with the liquidity crisis,
the company said on Monday
The travel service company is a member of the entity which oversees credit lines and settlements for airline tickets being sold to companies and travel agencies. Payments to these airlines are made with a system called Billing and Settlement Plan (BSP).
Cox & Kings, however, said it will continue to issue tickets on cash and carry basis. The company has defaulted on two commercial papers after a slew of the ratings agency downgrades as it grapples with a liquidity crisis.
IATA has asked the tour operator to prove its credit worthiness but in absence of credit and customer payments, it has become difficult for Cox & Kings to pay.
“The working capital situation at Cox & Kings stretched in the last few months and was further impacted due to its inability to replace the short term loans with long term loans and regular working capital lines,” it said in a press release last week.
Reports said Cox & Kings will initiate legal action against IATA while its sister concern ezeego1 is downsizing its business after being suspended from selling airline tickets on credit. (ANI)