Tiger Airways Australia's suspension has been extended by at least another week after a court hearing was adjourned again.
Australia's Civil Aviation Safety Authority (CASA) suspended the low-cost carrier's operations on 1 July, saying that there was a "serious and imminent risk to air safety" following a number of incidents.
Court hearings on the issue have been adjourned several times while Tiger and CASA try to resolve their differences, and today's hearing has been postponed until 11 August.
CASA said that the main outstanding issues are related to documentation that show how Tiger will address the "safety problems".
"We've been reviewing that documentation. We've found problems in it, and said to Tiger they've got to go back and fix those up," said CASA. The documents cover "everything from how the pilots fly the aircraft, to how the aircraft are operated themselves", it added.
The airline's Singapore-based parent, Tiger Airways, yesterday reported a net loss of Singapore dollar (S$) 20.6 million for the three months to 30 June due to high fuel costs and the impact of natural disasters in Australia.
Full year profitability will depend on how fast Tiger can resume operations in Australia, and how it copes with rising fuel prices, said the airline's acting CEO Chin Yau Seng. The suspension is costing the company S$2 million a week, he added, but the airline plans to continue flying in the country.
"This is a setback and a major setback. But we are committed to our Australian business and we see promise in the market. We are nowhere close to the tipping point of considering a pullout," he said.
Chin, however, added that should the airline resume operations, it could shrink its Australian network and concentrate on the more profitable routes.
Source: Air Transport Intelligence news
