CASA serves TT with show cause notice

[thewinchester]

Could TT be about to lose their Australian AOC? By the sounds of things, if CASA has their way then that would be a firm yes.

Needless to say, I wouldn't be sorry to see them drop out of the Australian market - and I dare say their compeditors would be expressing the same sentiment, specially QF/JQ who have a long-held anomosity towards the Singaporean airline.

CASA raps Tiger Airlines over breaches
AAP, April 20, 2011 11:07PM

DISCOUNT airline Tiger Airways faces being grounded by the aviation regulator following a series of serious safety and maintenance breaches.

The Herald Sun reports that the Civil Aviation Safety Authority (CASA) issued Tiger with a show cause notice on March 23 giving the airline 21 days to respond.

It is the most serious action taken by CASA against a major Australian airline since Ansett was hit with a similar warning in 2001, just months before it went bankrupt.

In a sternly worded letter to Tiger's Melbourne-based management, CASA raised concerns the cut-price carrier was not following proper procedures to ensure the utmost safety of passengers.

The Herald Sun said CASA demanded urgent answers amid concerns pilot training standards had slipped and short cuts had been taken on maintenance and other operations.

According to The Hun's journo:

The regulator demanded urgent answers amid concerns pilot training standards had slipped and short cuts had been taken on maintenance and other operations.

• Article referred to by AAP wire: Tiger Airways may faces being grounded after safety breaches | Herald Sun

 

[drewbles]

Whilst I have never and would never fly TT, having a carrier that is offering cheap fares does help keep JQ in line with pricing and also QF and DJ to a lesser extent.

Losing an airline is not a good thing for competition. That's how I look at it.

 

[Justinf]

Whilst I have never and would never fly TT, having a carrier that is offering cheap fares does help keep JQ in line with pricing and also QF and DJ to a lesser extent.

Losing an airline is not a good thing for competition. That's how I look at it.

But losing an airline who doesn't comply with safety and mainentance regulations is a good thing isn't it? If they can't lift their game, then they deserve everything they get.

 

[dfcatch]

Whilst I have never and would never fly TT, having a carrier that is offering cheap fares does help keep JQ in line with pricing and also QF and DJ to a lesser extent.

Losing an airline is not a good thing for competition. That's how I look at it.

+ 1.

I completely agree. Would be better for them to remedy their breaches and continue providing competition.

 

[Mal]

So the "Show cause" was issued on 23rd March, and they had 21 days to respond.

Why is this news now? What was the result of the "Show cause"? They're obviously still flying and CASA hasn't taken any action.

Typical poor and sloppy journalism.

 

[oz_mark]

So the "Show cause" was issued on 23rd March, and they had 21 days to respond.

Why is this news now? What was the result of the "Show cause"? They're obviously still flying and CASA hasn't taken any action.

Typical poor and sloppy journalism.

As per the article, Tiger has said:

"However, last month, CASA asked Tiger to clarify certain matters, which Tiger has responded to in full," the statement said.

As for why now - I guess the journalists only just found out about it.

If CASA thought there was an imminent danger, they do actually have the power to immediately ground an airline.

What we don't know is what CASA was concerned about, and what Tiger's actual response was.

 

[Saab34]

The main problems have been sorted, Tiger are maneuvering toward a new internal structure that will overcome all of this.

CASA's main problem was one certain A320 which has now had heavy maintenance work (1.5weeks) and now defect free. It cost the company 40 cancelled flights but they got there. Staff issues were another problem but being sorted.

Pilot slipping standards is rubbish. There is no cadet schemes nor cheap seats up front being offered. Its more the "safety department" slipping standards. Slipping standards in this case means no staff left in some management departments, especially the safety dept.

 

[drron]

So the "Show cause" was issued on 23rd March, and they had 21 days to respond.

Why is this news now? What was the result of the "Show cause"? They're obviously still flying and CASA hasn't taken any action.

Typical poor and sloppy journalism.

1-Too many QF stories in March.
2-QF on time today.
3-Journo's TT flight delayed yesterday.
4-journo cleaning up desk for Easter and found this vmemo at the bottom of pile.

And that was even without thinking too hard!

 

[MelUser]

I think this intro (watch the planes speed past!) says it all:

.::. TTAIRLINES.COM .::.

 

[markis10]

The article in the courier mail makes for humorous reading over breakfast, I liked this quote

But the price war with Qantas, Jetstar and Virgin has sparked concerns that passenger safety and pilot training is taking a back seat to the need to maintain profitability.

How can you maintain something you have not achieved?

Safety fears may ground Tiger Airways following Civil Aviation Safety Authority show cause | Courier Mail

There was a side article where a reporter when to OOL to see what passengers thought, baggage charges and flight cancellations were the concern, not safety, mind you this was the day after the SYD scanning debacle.

 

[futaris]

Travel Chaos As Tiger Airways Cancels Flights | Melbourne Brisbane

 

[samh004]

Travel Chaos As Tiger Airways Cancels Flights | Melbourne Brisbane

It’s shocking that that sort of thing is allowed to happen, considering there’s spare seats on other airlines, Tiger should be forced to buy those seats for their pax, though I’m sure others here would disagree, but it does sometimes happen (I recall Bundy Bear flying QF on a DJ ticket after some problem with his original flight).

 

[nlagalle]

Pilot slipping standards is rubbish. There is no cadet schemes nor cheap seats up front being offered. Its more the "safety department" slipping standards. Slipping standards in this case means no staff left in some management departments, especially the safety dept.

Perhaps not pilot standards but the quality of pilots. A friend of mine left TT and now flies for strategic. He said the culture at Tiger towards staff is appalling and many pilots leave quickly and move to better employers. So in the end you have all the good pilots leaving and the not so good ones stay.

 

[Slats7]

Never flown Tiger and don't plan on starting!!

 

[kamchatsky]

Travel Chaos As Tiger Airways Cancels Flights | Melbourne Brisbane

What's new?! Just like what I experienced last time .....

http://www.australianfrequentflyer....-trip-photos/my-shortest-trip-ever-25713.html

 

[kamchatsky]

It’s shocking that that sort of thing is allowed to happen, considering there’s spare seats on other airlines, Tiger should be forced to buy those seats for their pax, though I’m sure others here would disagree, but it does sometimes happen (I recall Bundy Bear flying QF on a DJ ticket after some problem with his original flight).

But then again TT (and JQ) are LCCs so this is the risk we all take when booking with them. Passengers needs to weigh the risk of being "abandoned" vs cost of the ticket.

 

[dk4]

The main problems have been sorted, Tiger are maneuvering toward a new internal structure that will overcome all of this.

With respect, the major problem for Tiger, is the "Ansett comparisons" hitting the news-cycle, e.g.

It is the most serious action taken by CASA against a major Australian airline since Ansett was hit with a similar warning in 2001, just months before it failed.

http://www.news.com.au/travel/news/safety-body-casa-is-hunting-a-tiger/story-e6frfq80-1226042791743

No amount of internal restructuring or CASA compliance, will be able to counter act the next 24hours, if Ansett continues to headline against the Tiger brand. Unfortunately Tiger doesn't have the investment in PR to be able to deal with these comparisons, and that will most likely mean its death in Australia, unless, IMO, SQ steps up to the plate. (But that would mean a business model change, buyout of the Ryans and introducing Silk Air domestic operations, which is unlikely.)

 

[harvyk]

With respect, the major problem for Tiger, is the "Ansett comparisons" hitting the news-cycle, e.g. http://www.news.com.au/travel/news/safety-body-casa-is-hunting-a-tiger/story-e6frfq80-1226042791743

I don't know if the Ansett comparisons will be that much of a problem... People have short memories, and whilst everyone knows Ansett went bankrupt , not as many people would remember (or know) that AN also had their B767 grounded 9 months earlier.

Also the majority of TT flyers are on there because it's cheap... The $$$ would be about the only thing they would be looking at whilst booking...

 

[TheStudent]

The problem that I see TT facing is an oil price of $112 (Commonly quoted WTI rate), an even higher Tapis rate, which is what Australia uses, and yet still higher jet fuel prices due to jet fuel being refined primarily from very high grades of oil, which have been off the market due to the conflict in Libya, a major suplier of high grade crude.

This rise in the price of fuel affects Tiger more then other airlines due to their budget business model as they spend a disproportionately high percentage of their earnings on fuel (i.e. an airline spending 30% of earnings on fuel like Qantas does will be not as hard hit by a fuel price rise of say 50% as Tiger, which would spend well above this 30% level)

I personally don't think this report will do much damage to TT, they are the only real player in the extreme discount market in Australia, however it will be interesting to see how the Ansett comparisons will play out.

 

[Saab34]

The problem that I see TT facing is an oil price of $112 (Commonly quoted WTI rate), an even higher Tapis rate, which is what Australia uses, and yet still higher jet fuel prices due to jet fuel being refined primarily from very high grades of oil, which have been off the market due to the conflict in Libya, a major suplier of high grade crude.

This rise in the price of fuel affects Tiger more then other airlines due to their budget business model as they spend a disproportionately high percentage of their earnings on fuel (i.e. an airline spending 30% of earnings on fuel like Qantas does will be not as hard hit by a fuel price rise of say 50% as Tiger, which would spend well above this 30% level)

I personally don't think this report will do much damage to TT, they are the only real player in the extreme discount market in Australia, however it will be interesting to see how the Ansett comparisons will play out.

Tiger gains 35% more in currency exchange as it converts its profits to Singapore dollars. Where as Jetstar Asia loses that as it converts its profits to AUD.

Also compared to the last fuel hike where it hit TT hard, they are now only flying trunk, higher yield routes, and the currency is in their favour alot more than 2008.