Shares of Singapore budget carrier Tiger Airways (TAHL.SI) fell as much as 3.9% in early trade on Monday after a local newspaper reported that the firm had cancelled about 40 flights over a four-day period.

Tiger, 49% owned by Singapore Airlines (SIAL.SI), confirmed in a statement that a number of cancellations occured last week as a result of the knock-on effects of two aircraft being grounded.

 

“These disruptions were caused by the impact of technical issues with two Singapore-based aircraft which required extended maintenance,” the airline said in a press release.

 

Tiger said the first aircraft, which was delivered in February 2010, was out of operation for several weeks. The carrier did managed to claim against the warranty of the plane, however.

 

The second passenger jet was grounded for week due to fuel tank contamination. Tiger operates about two dozen of Airbus (EAD.PA) A320 passenger jets.

 

At 0238 GMT, Tiger Airways shares were trading at $2.01 on a volume of around 1.8 million shares, rebounding from an intraday low of $1.96.

 

“Given the tight scheduling and high utilisation of planes for budget carriers, planes that are out of action will have a much more severe impact compared to the full service carriers,” DMG & Partners said in a report.

 

The Straits Times reported on Saturday that Tiger Airways has cancelled about 40 flights since September 28, citing problems such as fuel and electricity trouble.