Tiger Airways has been issued with a “show cause” notice by the Civil Aviation Safety Authority following a number of breaches in the safety and maintenance of their aircraft.
The budget airline triggered a price war when it first entered the market, causing both Qantas and Virgin to cut their domestic fares by 30 percent.
Despite this, Tiger has continued to undercut its competitors by considerable margins, sparking fears that the airlines has been taking shortcuts on the maintenance of its aircraft and pilot training in order to stay profitable.
The industry regulator is demanding answers and evidence to show that the claims made against the airline are not true. Tiger has 21 days to respond to the notice; failure to do so may result in all Tiger aircraft being grounded.
While the CASA has said that it will not comment on the case, Tiger Airways said: “Last month, CASA asked Tiger to clarify certain matters, which Tiger has responded to in full,” and that “Safety underpins Tiger’s operations at all times.”
Tiger is not the only airline looking to cut spending in the face of ever increasing fuel prices, the entire industry is struggling to remain profitable.
While some larger, more established airlines are able to upgrade their fleets to newer and more efficient aircraft, others (particularly budget airlines) can only cut spending wherever possible and some have already gone bust.
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