Tiger Airways' losses could top $12 million if grounding continues for up to 40 days

The airline could lose $2 million per week for up to six weeks.

Singapore Business Review spoke with Peter Gibson of Australia’s Civil Aviation Safety Authority (CASA) who said that if ever the Australian regulators decide to apply the extension, the ban could last for over a month.

"If ever CASA decided to apply extension, it could be that grounding lasts for up to 40 more days," he added.

Russell Shaw, Macquarie's senior transport analyst commented, "We have previously mentioned that the cost of having the fleet grounded in Australia we estimate to be ~$2m per week, so this would continue. There would also be negative cash flow implications as there would be very few forward bookings, which is the airline's primary source of cash inflow, coupled with numerous requests for refund which would further place strain on the cash flows."

On 1 July 2011, the Civil Aviation Safety Authority of Australia (CASA) instructed Tiger Airways Australia to suspend domestic services until Saturday, 9 July 2011 due to safety concerns.

Follow the link for more news on

Tiger Airways

The people you want to reach are already in this room.

Every quarter, SBR lands on the desks of the founders, CFOs, and directors running Asia's most consequential companies. Every day, they open our newsletter and read our website. It's a room that took twenty years to build — and it's the one most of our partners are trying to get into.

The good news is that the door is open. We work with companies on thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. The shape of the right partnership depends on what you're trying to do, which is why we'd rather start with a conversation than send a rate card.

If you have something this room should know about, tell us. We'll tell you honestly whether we can help, and how.

No rate cards until we understand the brief. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia