Australian authorities tread on Tiger's tail

Don Richards reports from Australia that the civil aviation authorities have given the Australian subsidiary of Singapore's Tiger Airways a show cause notice as to why their operating licence should not be withdrawn. They have 28 days to demonstrate that issues of concern are being actively corrected. Pilot training, safety and maintenance seem to be among the primary concerns.

The fact that Tiger has been given 28 days to respond indicates that there are no immediate safety issues on any of these counts and its proceedures and processes that are the most likely target. Otherwise they would have been grounded immediately by one of the world's most detailed and least forgiving regulatory regimes.

Tiger Australia do reportedly have a non safety-related less than outstanding reputation for delays and cancellations .This looks to be primarily due to the airline not yet having reached the necessary critical mass for a high utilisation based low cost operation up against much larger competitors with stronger brand images. The airline has only 11 aircraft with which to battle for market share against the might of Qantas mainline domestic, Virgin Blue with 75 aircraft and Jetstar with 50+. Any carrier in such a position is likely to be hard pressed to mount competitive frequencies and cover any hiccups in the day's flying programme .That in turn is likely to push them towards lower yields to attract the business= lower profitability = fewer funds for expansion.It's a vicious circle and a difficult one. Low cost airlines are though very aware of their vulnerability to finger pointing should they have an accident or major incident and it is unlikely that any actual corner cutting on safety lies beneath the order.