Tiger Airways Singapore Awarded Sin$4.7 Million in Damages from Swissport

Tiger Airways Singapore has been awarded Sin$4.7 million in damages resulting from its breach of contract claim against Swissport Singapore Pte Ltd.

The Sin$4.7 million is the full amount claimed by the airline for damages incurred as a result of Swissport’s premature termination of its ground handling agreement with Tiger Airways.

Swissport had in January 2009 given Tiger Airways notice that it was unilaterally terminating its ground handling service agreement with effect from 1 April 2009, about two years earlier than the stated expiration date of the agreement. As grounds for this early termination, Swissport had sought to rely on the voluntary termination of its licence to operate at Changi Airport granted by CAAS.

In March 2009, Tiger Airways commenced legal action against Swissport for breach of contract.

The High Court of Singapore ruled in favour of Tiger Airways in April 2009 and ordered Swissport to pay damages. In August 2009, the Singapore Court of Appeal dismissed a subsequent action by Swissport for leave to appeal the High Court’s decision.

Following hearings to assess damages, the Court has awarded the full claim of S$4.7 million to Tiger Airways. Once received, this amount, plus costs awarded, will be recognized in the airline’s financial accounts.

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