Kingfisher Airlines has canceled more than one quarter of its flights since Monday because many pilots have failed to report for work as India’s tax authorities continue to freeze the carrier’s bank accounts over non-payment of taxes. “Yes, there is difficulty. But we are doing the best we can under the circumstances,” says Chairman Vijay Mallya. “The focus is on making sure that traveling interests of public are held high.” The airline is operating only 160 flights a day, down from 400 six months ago.

The financial performance of top global aerospace and defense companies is expected to stay flat in 2012, a British consultancy firm says. Despite the challenging environment, the aerospace and defense industry is likely to continue to develop game-changing technology innovations, according to the report, “Global Aerospace and Defense Outlook: A Tale of Two Industries,” by Deloitte Touche Tohmatsu Limited’s (DTTL) Global Manufacturing Industry Group.

The International Air Transport Association (IATA) yesterday suspended cash-strapped Kingfisher Airlines from its Clearing House for non-payment of taxes. “IATA has suspended Kingfisher Airlines’ participation in the IATA Clearing House (ICH). This is because the airline did not settle their ICH account within the stipulated deadline,” IATA spokesman Albert Tjoeng says. The India-based airline “will be reinstated after it fulfills the ICH requirements,” Tjoeng adds.