Wednesday, July 6, 2011

Tiger Airways stops selling tickets

Manila Bulletin
July 6, 2011, 9:30pm

SYDNEY, July 6 (AFP) – Grounded Australian budget carrier Tiger Airways stopped selling tickets Wednesday after the airline came under pressure from the consumer regulator over its ability to deliver flights.

Australian Competition and Consumer Commission (ACCC) chief Graeme Samuel was tight-lipped on whether he was considering legal action against the carrier after it continued to sell tickets for next week in defiance of his warnings.

Tiger was banned from flying domestically last Saturday until this weekend by aviation regulators over ''serious and imminent'' safety risks and could face a more prolonged grounding if a court order is sought.

But Samuel said Tiger continued to sell flights until late Tuesday for next week without caveats – the earliest just hours after the ban expires -- despite having no certainty that it would be allowed to fly.

''We had said publicly that they could continue to sell tickets only so long as they had a reasonable expectation of being able to provide the flights that they were selling tickets for,'' Samuel told AFP.

''It's a pretty simple proposition. If you don't think you can supply the flights then you shouldn't be selling the tickets.''

The carrier posted a notice on its website Wednesday saying ''flights have been temporarily removed from sale'' due to its grounding by the Civil Aviation Safety Authority (CASA).

''Discussions with CASA regarding a resumption of services are ongoing and constructive,'' Tiger said, referring to crisis talks in Melbourne.

Samuel would not be drawn on whether the ACCC believed Tiger had breached trade laws, for which it could be fined more than Aus$1.1 million (US$1.17 million), saying only that they were in ''continual and constant communication''.

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