Back to business: Aussie Tiger Airways roars back from crisis

Tiger will recommence ticket sales and will implement a gradual resumption of domestic services from 12 August 2011.

According to a release, the Civil Aviation Safety Authority of Australia has today discontinued its application in the Federal Court of Australia for an extension of the period of suspension of Tiger Airways Australia’s Air Operator’s Certificate. This action re-instates Tiger Airways Australia’s AOC. Tiger Airways Australia has worked constructively with CASA to address the concerns that were raised, which has now enabled the AOC to be re-instated.

CASA has imposed certain conditions on the AOC, including an initial limitation of 18 sectors per day in August 2011. Sector production after August 2011 will be subject to CASA approval. Tiger Airways Australia is committed to complying with these conditions.

Resumption of Services at Tiger Airways Australia
As a consequence, Tiger Airways Australia will recommence ticket sales and will implement a gradual resumption of domestic services from Friday 12 August 2011.

The airline is resuming services with a simplified flight programme in order to focus on flying popular and profitable routes. Flights will initially resume between Melbourne Airport (Tullamarine) and Sydney for travel from Friday 12 August 2011. As part of its simplified flying programme, Tiger Airways Australia will reduce its operating fleet from 10 Airbus A320 aircraft to eight Airbus A320 aircraft. Consequently, two Airbus A320 aircraft will be redeployed to the Company’s other airline businesses.

Further network developments will be announced shortly.

The new flight schedule will initially consolidate the business into a single crew base operating from Melbourne Airport (Tullamarine). Tiger Airways Australia has today confirmed the imminent closure of its Adelaide Airport crew base and the temporary suspension of its Avalon (Melbourne) Airport crew base. All Tiger Airways Australia staff currently working from the Adelaide and Avalon crew bases will be offered redeployment to the Melbourne Airport (Tullamarine) operation.

Passengers already booked to fly with Tiger Airways Australia from 12 August 2011 will be advised of any change to their travel plans as soon as possible and will be offered a range of options including a free of charge transfer to another Tiger Airways Australia flight of their choice, or if their flight is not operating a full refund back to the original form of payment or a credit for deferred travel.

Tiger Airways Australia is committed to a safe, viable and long term future in Australia. The airline
remains committed to regaining the confidence and trust of its customers, through an enhanced focus on punctuality and convenience, while offering Australia’s most affordable air fares.

Carbon Price Impact

On 11 July 2011, the Australian Government introduced a carbon price system. Commencing from 1 July 2012, a starting carbon price of A$23 per tonne has been proposed to apply to Australian domestic airlines through an increase in aviation fuel excise.

Whilst the expected cost impact on Tiger Airways Australia is highly dependent on the flying program at that time, initial modelling suggests that the impact is estimated to be approximately A$3 per passenger, which will vary depending on sector length. Tiger Airways Australia intends to pass this additional cost on to passengers.

Services operated by Tiger Airways Singapore Pte Ltd to and from Australia are not impacted by the proposed carbon price system. 

Photo credit: Kentaro Iemoto@Tokyo