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2011
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July
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July
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Thursday, July 7, 2011
Is it the end of Tiger Airways Australia, and with it low airfares?
TIGER AIRWAYS was in disarray last night following the extension of its flying ban and the shock resignation of its Australian chief executive.
The aviation safety regulator will seek a court order to keep Tiger Airways Australia grounded until August 1, due to ongoing safety concerns. The decision dashes hopes of a return to the skies this weekend.
An extension of the grounding will upset the travel plans of thousands more passengers who booked flights on the airline months ago. They now join tens of thousands seeking refunds.
The Civil Aviation Safety Authority (CASA) said it would go to the Federal Court in Melbourne today to seek the extension.
Tiger issued a statement last night saying its chief executive, Crawford Rix, will finish up at the airline on July 31.
His replacement is Tony Davis, the group president of Tiger Airways Holdings who was sent from Singapore to lead the crisis talks with CASA.
Each day of grounding means 60 flights are cancelled, affecting 9000 passengers booked on routes mainly linking Australia's southern and eastern seaboards.
''If CASA completes its investigations and determinations before August 1, 2011 and is satisfied Tiger Airways Australia no longer poses a serious and imminent risk to air safety it may be possible for it to resume operations earlier,'' the regulator said.
''The suspension of Tiger Airways Australia's operations remains in place until either the Federal Court refuses CASA's application or CASA withdraws it.
''CASA is making the application to the court because investigations into Tiger Airways Australia will not be completed by the end of the initial five working day suspension period.''
The court application is another hit to the no-frills airline, despite days of pleas by the company.
Tiger will be required to retrain its 100 pilots before the airline is allowed to fly again.
Also, the local operation is now under fire from consumer authorities over the selling of tickets during the grounding.
Adding to the airline's woes, the South Australian government is seeking to recover $2.25 million it gave the airline.
It was an advance for a flying base of up to four aircraft, but Tiger wanted to change that to just one plane.
Mr Davis has failed to convince the safety regulator the local airline is fit to fly.
The talks between CASA and Tiger are focused on the airline's problem of pilot proficiency - their training, qualifications and competency - after two incidents of aircraft flying below minimum altitudes while landing triggered the flight ban.
The practicalities of how pilot retraining will be conducted, when, and who will lead the checks are being thrashed out.
While that remains unresolved the airline won't be flying, irrespective of whether the regulator gains formal court permission to extend the ban.
Beyond immediate pilot retraining issues, there are longer term issues for Tiger. It has to meet the conditions the regulator has imposed on its flying licence as a result of the earlier ''show cause'' notice - and that involves systemic issues to do with quality assurance, risk management, safety protocols, airworthiness assurance and the appointment of suitably qualified personnel - a much more complicated and lengthy process than updating pilot licences.
The airline's slow response to official warnings of misleading and deceptive conduct in selling tickets for flights - without warning customers flights might not actually take off - has drawn the ire of federal and state consumer law regulators.
The airline has since halted domestic ticket sales. Despite the airline committing to put on staff to process refunds, it still could take ''several weeks'' before consumers will get money back.
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