Singapore budget airline Tiger Airways Holdings said Australian regulators' decision to halt its domestic operations there over safety concerns would cost it an estimated S$2 million ($1.6 million) a week.
Tiger's board also said it had directed Tony Davis, Group President and Chief Executive Officer of the Company, to focus on assisting Tiger Airways Australia to resume operations as soon as possible.
The Civil Aviation Safety Authority (CASA) said on Saturday it had grounded the carrier's entire domestic fleet of 10 Airbus A320 aircraft for a week after it failed to adequately respond to safety concerns first raised in March.
"The Board has appointed Mr. Chin Yau Seng as an additional Executive Director with effect from 4 July 2011. Mr. Chin will work with Mr. Davis in providing oversight of the rest of the company's interests," Tiger said in a statement. It is the first time a carrier's entire fleet has been grounded in Australia, CASA spokesman Peter Gibson said.
Tiger's domestic Australian flights are grounded until July 9, but flights to Singapore from Australia are not affected. It operates 14 Airbus A320 aircraft in Singapore, serving regional routes to other Southeast Asian countries, India and China.