Tiger Airways scheduled for Australian aviation crisis talks

by Alister POOLE on July 4, 2011

Tiger Airways is set to hold crisis talks with regulators in Australia, in attempt counter safety claims and kick-off its domestic operations again.

The Singapore-based budget carrier’s aircraft had to be grounded in Australia at the weekend by CASA, the Civil Aviation Safety Authority, on safety concerns. Disruptions came at the start of the peak school holiday season, a time that usually spells less intense price competition.

This morning, shares of rivals Virgin Australia and Qantas jumped up in early trade. Tiger’s domestic flights in Australia are going to be grounded until the 9th of July, however its flights to Singapore aren’t affected.

The airline said in its statement to Singapore’s Stock Exchange that Tony Davis, the company’s chief executive, has been charged with trying to get its planes back up and running again in the air. Tiger said that Mr Davis is going to focus on Tiger Airways Australia resuming operations as soon as is possible.

At present, Tiger operates at least 10 Airbus A320s in Australia and moves around 9,000 passengers per day on just over 60 domestic flights. The recent developments mark the first time in the history of Australian aviation that a carrier has had its entire fleet grounded.

CASA strongly believes that permitting Tiger to continue flying will poses a serious risk to air safety, said the regulator in a statement before also explaining that it has been monitoring the airline incredibly closely and had already sent it a notice that threatened to suspend its licence with regards to safety issues.

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