The King of Good Times seems to be running into more bad times. KF Airlines is cnacelling more flights due to the financial crunch faced by the giant.

The Kingfisher Airlines Ltd (KAIR), nation’s Lucury Airliner is falling into deeper ravines of financial issues. The airline in the morning has cancelled nearly 16 more flights from Mumbai and Bangalore. But the Bangalore based Airliner controlled by multi billionaire Vijay Mallya said in a Feb 18 email statement that they plan to resume its full schedule of 240 flights a day this week. But on Sunday about 28 flights were cancelled. It may be noted the cash strapped airline has cancelled nearly 32 daily flights since February 17.

The numerous cancellations announced by the airline have evoked sharp response from the Directorate General of Civil Aviation (DGCA), in the form of an inquiry. The DGCA has asked the airline to submit a detailed report on the issue. Failing to give a satisfactory reply could land the airline in to further trouble which could go the extent of cancellation of its license.

But the airliner said things will be set right shortly. “We are not going to pull out operations from any base and about 10 aircraft will be back in service soon. We are in talks with investors and the airline will soon get recapitalized,” said CEO Sanjay Aggarwal. The airline has faced months of speculation about its future after posting more than 10 straight quarterly losses, having accounts frozen by tax authorities and paring services in November. Kingfisher is seeking new investment as it struggles under $1.3 billion of debt.

Market Position: Kingfisher, Jet Airways (India) Ltd., (JETIN) the nation’s biggest carrier, and discount airline SpiceJet Ltd. (SJET) all posted third- quarter losses as higher jet fuel costs and price wars eroded gains from rising travel. Kingfisher’s loss in the quarter ended Dec. 31 widened to 4.44 billion rupees ($90 million) from 2.54 billion rupees.  (With inputs from internet: AarKay)