A CASA grounding is almost certain death for an airline.
I hope its a huge reminder for the noggin heads at other airlines.
SINGAPORE: Tiger Airways shares nosedived Monday after Australia's Civil Aviation Safety Authority (CASA) grounded its local fleet until July 9, due to safety concerns.
Investors were unloading their shares despite the airline saying it remained committed to the Australian market in the long term.
At least five analysts -- from CIMB, Citi, CLSA, Credit Suisse and Phillip Securities -- have cut their ratings to sell following the announcement.
Tiger's stocks plunged 16 per cent or 19 cents to close at S$1.
Stephenson Harwood global head of aviation partner Paul Ng said: "If you look at last year's published results of the group, Tiger Australia was actually a loss-making component of the overall group.
Credit Suisse has said Tiger's days could be numbered, potentially to the benefit of Qantas and Virgin Australia whose shares respectively rose 6.5 per cent to AUD$1.97, and 10.5 per cent to 31.5 Australian cents, following Tiger's woes.
Tiger Airways shares plunge - Channel NewsAsia