TIGER AIRWAYS faces millions of dollars in break fees on long-term aircraft leasing agreements if it decides to quit the Australian domestic market following its forced grounding.
The large cost of pulling out of Australia due to complicated lease contracts increases the pressure on Tiger to do its utmost to convince the air safety regulator to allow it to fly here again.
The majority - if not all - of Tiger's 10 A320 aircraft based in Australia are cross-collateralised, which means that if it pulls out of this country its Singaporean parent will be liable for breaking lease agreements. It is also likely to have to meet tax liabilities in Australia. Full story
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