Tiger Airways remain grounded as a scheduled Federal Court directions hearing of the Civil Aviation Safety Authority's application to continue the suspension of the Singapore budget carrier has been adjourned for a third time. A Federal Court directions hearing had been scheduled for Monday 1 August 2011, but the matter has now been adjourned to Wednesday 3 August 2011.

CASA applied to the Federal Court on 7 July to continue the suspension of Tiger Airways, in order to complete its investigations of serious safety issues identified within the airline’s operations. On 28 July 2011, CASA gave Tiger Airways a notice listing a set of conditions it is proposing to impose on its air operator’s certificate which may form the basis for the airline resuming operations. The notice also set out what Tiger Airways needs to do before CASA would even consider imposing the conditions.

The Singapore-owned airline has now replied to the notice and CASA is assessing their response. If the conditions are imposed and CASA is satisfied the airline can safely resume operations, there will be no need for CASA to pursue its application in the Federal Court for an order continuing the suspension of the airline's operating certificate.

"Tiger Airways Australia and CASA are currently in ongoing discussions regarding the suspension and see no utility in having a hearing today whilst these discussions continue," the airline said in a statement released to the Singapore Stock Exchange.

"Tiger Airways Australia flights will, by virtue of the adjournment, remain suspended until at least August, 3 2011."

The airline sad it will automatically refund all passengers booked to fly between August 1, 2011 and August 4, 2011 (both dates inclusive).

"A further announcement, concerning flights scheduled to operate from August 5, 2011 and the re-commencement of sales, will be made at the appropriate time," it says.