British Airways has suspended its code-share agreement with struggling Indian carrier Kingfisher Airlines. This is the latest blow for the troubled carrier, which has been operating a reduced service in recent weeks.

BA’s regional commercial manager for South Asia Chris Fordyce has reassured customers booked on Kingfisher flights that are still operating that they would be unaffected.

He commented: “Customers booked on cancelled services will be able to rebook to an alternate service where available or claim a full refund.”

Less than a week ago the International Air Transport Association (IATA) suspended Kingfisher Airlines from the global carrier-to-carrier account clearing system for failing to make payments.

Following the latest news from BA, Kingfisher Airlines released a statement that said: “We request one and all to appreciate the serious handicaps we face not only because of our frozen accounts but because of the operating environment. We are working hard to resolve the issues that confront us given the current environment.”

The carrier revealed that it would be cutting back its overseas operations to save costs in addition to other measures.

“We would like to confirm that we are curtailing our wide body overseas operations that are bleeding heavily. To this end we have already returned one Airbus A 330-200 to the lessor in the UK. Positive and immediate action is being taken on all fronts to cut costs.”