This was published 12 years ago
More problems with Tiger found: grounding could last to end of month
By Andrew Heasley
Damages ... Tiger's parent company expects to be significantly affected by Tiger Australia's safety woes.Credit: Michael Clayton-Jones
TROUBLES worsened for the grounded Tiger Airways Australia yesterday when Australia's aviation safety regulator uncovered more deficiencies just as its woeful financial performance dragged down the group's latest international results.
The new safety woes could see Tiger's grounding extended as far as the end of the month.
Unaudited accounts for the first financial quarter this year show Tiger Airways Australia lost $18 million ($S23.2 million), dragging the airline group's pre-tax loss to $9.5 million, and after tax to a $16 million loss, the company said in Singapore last night.
The five-week grounding of Tiger Airways Australia has cost the airline $13.7 million in forgone ticket sales and lost ancillary revenues of $S1.7 million, and its grounding is still costing $1.6 million a week, the company told investors.
But just an hour before the release of Tiger's international results, the Civil Aviation Safety Authority confirmed rumours that it had found more problems at Tiger Australia.
"CASA has identified deficiencies in some of the documentation provided by Tiger and these need to be addressed by Tiger before CASA can complete its assessment and review of the documentation. This will take some more time," the safety regulator said last night.
"Progress on this matter relies on Tiger providing the correct and accurate documentation to CASA."
Fairfax Media believes the problem relates to incomplete, inaccurate and/or outdated manuals that collectively form the technical and procedural reference material that underpins the airline.
"We expect the group to be significantly affected by the expected losses of Tiger Airways Australia," said the acting chief executive of Tiger Airways Holdings, Chin Yau Seng. "As and when we are in a position to resume operations, our relaunch will focus on route profitability and operational excellence."
The Civil Aviation Safety Authority and Tiger Airways Australia are due in the Federal Court in Melbourne at 2.15pm today over an application by the safety regulator seeking court approval for its extended grounding of the airline.
The four previous slated hearings have been postponed by consent between the parties.
The word in legal circles is that CASA sees little value in continually returning to the court every few days and the agency wants a longer two- to three-week adjournment to fully assess the airline.
While the case is adjourned, the airline remains grounded.
Meanwhile Virgin Australia reported a 20 per cent fall in passengers travelling internationally last month compared with June last year. It blamed its decision to quit flying domestic New Zealand routes and the impact of the Chilean ash cloud.
Jetstar is reported to be seeking to start a new-low cost division in Hong Kong to cash in on the rapidly growing Chinese air travel market.
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