, Singapore

Aussie Tiger Airway’s hearing set for July 22

DMG says the airline has to return over S$3m to the South Australian government as it plans to decrease its fleet in Adelaide.

Here’s more from DMG:

The hearing over the extension of Tiger Airway's Australian operations has been set for July 22, pending which it will remain grounded. It has initiated talks with the South Australian government over a S$3m grant it received to which it has to return as it intends to decrease its fleet to one A320 in Adelaide. It has been confirmed that the same Australian captain was at the controls of both A320s that breached minimum safety altitudes that led to Tiger Australia's grounding. A prelim report revealed inaccurate information on the carrier's commercial database led to the error. We have not factored in the S$3m potential refund. Stock currently trades at 3.7x FY12F P/B and 34x FY12F P/E vs closest rival Air Asia 
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