Tiger Airways reports that it has been successful in its legal action in the Singapore High Court against its former ground handling company, Swissport, for breach of contract.
Swissport Singapore, a wholly-owned subsidiary of Swissport International, was the exclusive ground handling provider to Tiger Airways at Singapore’s Changi Airport. According to Tiger, when Swissport decided to withdraw from the Singapore market last month it sought to "unilaterally terminate" its five-year contract with Tiger Airways despite having almost two years of the contract remaining.
Tiger adds that Swissport sought to rely on the fact that it had voluntarily surrendered its operating licence to the Civil Aviation Authority of Singapore (CAAS) as grounds to prematurely terminate the long-term agreement with the airline. Swissport had refused to provide compensation for the early termination of its contract and as a result Tiger Airways was forced to resort to taking legal action against Swissport in an effort to recover significant damages.
Rosalynn Tay, managing director Tiger Airways commented, “We are obviously pleased that the Court has agreed that the termination of our long-term ground handling agreement by Swissport was wrongful. We will now proceed to seek damages from Swissport, as ordered by the Court.”
Tiger Airways, represented by Allen and Gledhill, successfully argued that Swissport did not have valid grounds for the premature termination of the agreement and the Court agreed that Tiger Airways was entitled to seek damages for Swissport’s breach. The Court has ordered that an assessment of damages payable by Swissport will be heard at a later date.
Since the termination by Swissport, Tiger Airways has entered into an interim agreement with a new company Asia-Pacific Star, a subsidiary of SATS, which has been established specifically to provide services to low-fare airlines such as Tiger.
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