Business News
Tiger Airways to fight Australian grounding order
Jul 4, 2011, 3:49 GMT
Singapore - The chief executive of Tiger Airways Holdings Ltd was expected Monday to head to Australia after Sydney authorities grounded the Singapore-based budget airline's planes at the weekend because of safety concerns.
The Civil Aviation Safety Authority of Australia on Saturday suspended Tiger Airways from flying in Australia, saying the airline had failed to improve pilot training and maintenance standards despite an earlier warning.
The ban mainly affected Tiger Airways Australia Pty Ltd, a subsidiary operating on the low-cost domestic Australian market.
The Singapore-based parent company said in a statement late Sunday that Davis had been directed 'to focus on assisting Tiger Airways Australia to resume operations as soon as possible.'
The suspension of its fleet in Australia was estimated to be costing Tiger Airways 2 million Singapore dollars (1.63 million US dollars) per week, the statement said.
The Australian agency banned Tiger Airways from flying in Australia for at least a week but said it would apply to the Federal Court for an extension.
On Monday, shares of Tiger Airways dropped about 8 per cent to a record low of 1.09 Singapore dollars by noon on the Singapore stock market before starting to regain some ground.
National flag carrier Singapore Airlines holds about one-third of Tiger Airways, but it is not involved in its operations.
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