The joining of Kingfisher Airlines into the global airline grouping "Oneworld Alliance" was put on hold on Friday due to the financial crisis faced by the Vijay Mallya owned carrier.

The development came a day after the International Air Transport Association (IATA) suspended Kingfisher Airlines from its Geneva-based clearing house (ICH) due to non-payment of dues to airline members as per a PTI report.

"Kingfisher Airlines and Oneworld yesterday agreed to put the Airlines entry into the alliance on hold to give it time to strengthen its fiancial position," a joint statement issued in Washington said. 

Kingfisher was slated to formally join the alliance on February 10.

"These are turbulent times for the arirline industry in India and in many other parts of the world. We have been working closely with Kingfisher over the past months and it has become increasingly clear recently that the airline needs more time to resolve the financial issues it is confronting before it can be welcomed into Oneworld," the alliance CEO Bruce Ashby said in a statement.

He said the airline would be inducted on a "new joining date once it is through with this current period of turbulence."

Mallya said that in view of "many priorities centred around Kingfisher's recapitalisation efforts, we felt it prudent to defer our entry into the alliance for a little while."

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