Tiger Airways (TAHL.SI) is working with Australia’s aviation regulator towards the resumption of domestic flights in the country by early August, a source said on Wednesday, after its flights were grounded more than three weeks ago on safety concerns.
Australia’s Civil Aviation Safety Authority (CASA) is expected to lift a ban on the Singaporean budget carrier flying on Aug. 1, the source familiar with the situation said, although the exact timing of Tiger resuming flights was still being discussed.
A Federal Court hearing is scheduled for Thursday to consider extending an existing flying ban which expires on July 31, but Tiger is expected to seek an adjournment to that hearing, the source said.
Australia halted Tiger’s local flights on safety concerns on July 2, the first time a carrier’s entire fleet has been grounded in the country.
A Tiger spokeswoman said the airline continued to “work constructively” with the regulator but declined to say when it expected to resume services.
“There is no information available yet as to when Tiger Airways Australia may resume services, but it is committed to do so as soon as possible,” the airline said in a statement.
CASA said no decision had been made on Tiger resuming services yet.
“We are aiming to finalise the matters on or before Aug. 1 and we are still working towards that deadline. No decision has yet been taken,” a CASA spokesman said.
While analysts had said Tiger had also considered scaling down its Australian operations or even exiting the business, aviation sources say the airline is now expected to resume services.
Shares in Tiger, which is a third owned by Singapore Airlines (SIAL.SI), were trading up 0.9% at $1.19 in Singapore on Wednesday. The company listed in January 2010 at $1.50 per share.
Tiger’s chief executive officer, Tony Davis, took over the day-to-day running of the troubled Australian operations earlier this month, replacing Crawford Rix who will leave the company by the end of the month.
Tiger generated 45% of its $622 million revenue in the 2011 financial year from the Australian operations.
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