Tiger Airways plays down regulator concerns, but unions dig in at Qantas

The famously volatile aviation sector is going through a rough patch at the moment in Australia, with budget carrier Tiger Airways warned by the aviation regulator over procedures and industrial unrest growing at the national carrier Qantas.

Singapore-backed budget carrier Tiger Airways this morning played down a report the Civil Aviation and Safety Authority had issued it a “show cause” notice on March 23, which gave it 21 days to respond.

According to a report in the Herald Sun, CASA has raised concerns with Tiger about its safety procedures.

Tiger has responded with a statement saying it has a policy of “not commenting on dealings between the airline and the regulators”.

“However, last month, CASA asked Tiger to clarify certain matters, which Tiger has responded to in full.”

“Safety underpins Tiger’s operations at all times.”

A spokeswoman told SmartCompany no action has been taken by CASA and if there was a serious problem, the airline wouldn’t be flying.

Elsewhere, three unions are threatening strike action against Qantas, with baggage handlers and ground staff seeing red over a change of employment for Melbourne-based staff which they argue will lead to lower pay.

Qantas chief executive Alan Joyce has been vocal in defending the airline’s industrial-relations record, and has confirmed the company has been training managers as fill-ins should a workers’ strike proceed.

The report comes after security incidents at Sydney and Melbourne airports disrupted people’s travel plans this month.

Qantas’s budget offshoot, Jetstar, has said it will seek damages from Sydney Airport for the disruption. Almost half of the 29 flights cancelled were Jetstar’s, after the entire Sydney terminal was rescreened following a power outage.

Meanwhile, Qantas is reportedly in talks to gain traffic rights to fly to Europe, via China.

“We’d fly in from multiple destinations using Shanghai as a hub for flights to Australia and Europe,” Joyce is quoted by the Herald Sun.

But Qantas isn’t the only airline with international plans on the mind: Virgin Blue is reportedly set to announce a tie-up with Hawaiian Airlines, in addition to existing alliances with Middle Eastern carrier Etihad, Air New Zealand and Delta of the US.

Virgin chief John Borghetti has also flagged an announcement on its Asian operations.