Tiger Airways grounded over safety concerns

The Australian aviation authority has suspended the domestic license of Singapore's budget carrier for a week at least
4 July, 2011

Tiger Airways' fleet in Melbourne yesterday, where it will remain parked until at least Saturday.

Tiger Airways is endangered.
All Australian domestic flights operated by Singapore Airline’s budget carrier have been grounded until Saturday, July 9, due to safety concerns. The troubled airline’s future is uncertain after its most recent breach of safety standards.
Many industry watchers believe the grounding could be extended beyond Saturday. The carrier stands to lose an estimated AU$1 miilion a day from the grounding -- the longer it remains on the ground, the less likely its return.
Australia's Civil Aviation Safety Authority (CASA) is determining whether to seek orders from the Federal Court to extend the grounding.
Tony Davis, international chief executive of Tiger Airways, is having crisis talks with CASA in Melbourne this afternoon.
The “last straw” came on Thursday night when a Tiger Airways Airbus A320 from Sydney to Tullamarine (Melbourne) breached minimum altitude levels -- first on a failed landing attempt and then a second time as it grappled with a tailwind.
The plane was 15 kilometers from the tarmac at about 500 meters altitude, well below the 750 meters stipulated by the aviation authority.
But the writing was already on the wall. CASA gave the airline a “show cause” order as to why their license shouldn’t be revoked in March, citing deficiencies with pilot training and maintenance procedures.
“(CASA) has lost confidence in Tiger’s ability to manage safety appropriately,” CASA spokesperson Peter Gibson said. “The last thing CASA wants to do is put airlines on the ground and inconvenience the traveling public, but safety has to come first.”
Tiger has a busy week ahead in reassuring safety regulators that it can comply with standards.
In a statement on its website, Tiger said it desired to “resolve the concerns (CASA has) raised and aim to resume our services as quickly as possible."
The airline is refunding all booked tickets, while optimistically taking bookings beyond July 9, the day its current grounding expires.
The grounding is unprecedented in Australian aviation history, although a partial suspension was applied to the Australian-owned Ansett Airlines, shortly before its collapse in September 2001.

Tiger’s downfall is other airlines’ gain

Tiger Airways began service in Australia in 2007 with a fleet of five aircraft then swiftly doubled its size.
Singapore Airlines began with a 49 percent share in the budget carrier, but has reduced its share to 33 percent.
Tiger Airways has lost AU$7.1 million in the last year and its share price has crashed on the Singapore stock exchange, while Singapore Airlines shares continue to grow.
Qantas and Virgin have both put on extra services to accommodate travelers affected by the Tiger grounding. Qantas engineers called off a strike that was set to roll out across the country this week.
With a tarnished brand and mounting losses, the question remains how long Tiger Airways -- even if it is given flight approval by CASA –- will remain in Australian skies.
Local obituaries for the budget carrier are already being written.