Tiger Airways Australia: Mayday! Mayday! A Lesson in Crisis Management

This case chronicles the events surrounding the six-week grounding of Tiger Airways Australia between June and August 2011. During this time, Tiger Airways Australia’s revenue falls by 44% with the Tiger Airways Group share price falling 20%. Australian air safety regulators and key investors rapidly lose confidence in the company. This crisis necessitates drastic changes in the board of directors and executive leadership. On November 1, 2011, Chin Yau Seng is appointed the new CEO of the Tiger Airways Group. How can Chin guide the company as it emerges from the crisis, restore confidence and return the company back to normal operations?

The primary learning objective of this case is for students to be able to recognise the importance of sound corporate governance, and how it relates to effective crisis management. Specifically, students will become familiar with the low-cost carrier business model and the impact a crisis has on the board of directors and management.

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