Singapore-owned budget carrier Tiger Airways will have to refund money to passengers booked to fly until next Thursday.

The Civil Aviation Safety Authority has given Tiger Airways Australia a set of conditions which can form the basis for the airline resuming operations. A number of these conditions must be satisfied before any flights can be undertaken.

Others require Tiger Airways to take ongoing actions, to CASA's satisfaction, as the airline builds back up to a normal schedule. The conditions do not allow for a resumption of operations until CASA is satisfied Tiger is able to do so safely.

If Tiger accepts these conditions, 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.

In the meantime, Tiger remains suspended and the matter is listed to be heard by the Federal Court on 1 August 2011.

CASA suspended the operations of Tiger Airways Australia on 1 July 2011 due to serious and imminent risk to air safety.

In statement to the Singapore Stock Exchange, Tiger said “As a result of the progress made since July 1, 2011, Tiger Airways Australia is confident that it can comply with these conditions and expects to resume services in the near future.

“As a consequence, Tiger Airways Australia will automatically refund all passengers booked to fly between August 1, 2011, and August 4, 2011 (both dates inclusive).

The airlines said 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.