Photograph: AirSpace user cl
The aircraft arrived in Australia last month but has not been able to enter into revenue service due to the Civil Aviation Safety Authority still assessing the airline's response to a show cause notice concerning the airline's oversight of maintenance and pilot training, and not the maintenance and pilot training itself, according to sources familiar with the matter. The regulator and carrier hope to conclude the matter this month.
Tiger chief executive Tony Davis announced Thursday evening that the company had "shelved" growth for its Australian division and seat capacity "year on year will be flat" so the division can focus instead on restoring profitability. He did not mention any effect the show cause notice had on operations.
Tiger Australia incurred a SGD$7.1m (A$5.4m) loss to the year to 31 March. "The floods and weather disruption cost us around [S]$15m of profitability. That was because our profits in Australia are generally derided in the December, January peak season," Davis says. The group's total pre-tax profit nearly tripled to S$57m from last year's S$19.9m.
As part of the stagnation, the two A320 aircraft that were to provide growth this year will instead be dispatched to Asia for one of the carrier's divisions in Singapore or the Philippines or forthcoming divisions in Indonesia or Thailand.
Friday Update: A Tiger spokeswoman confirms the A320 aircraft in question will be transferred to Asia. "We can confirm that the aircraft that arrived last month which hasn't entered service yet (the aircraft is currently undergoing regulatory and airworthiness checks as planned) will go to Asia in due course," she says.