Tiger Airways ban extended as CEO quits

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The survival of Tiger Airways in Australia is looking grim after the shock resignation of its CEO and the decision of the aviation industry safety authority to extend its suspension on flying until the end of the month.

The Civil Aviation Safety Authority (CASA) will go to the Federal Court in Melbourne either on Thursday or Friday to seek the extension of the budget airline's flying ban until August 1.

Just hours after that announcement on Wednesday night, Tiger chief executive Crawford Rix said he will be finishing up at the airline on July 31.

He's being replaced by Tony Davis, the group president of Tiger Airways Holdings and the man who was sent from Singapore to lead the talks with CASA.

CASA slapped an initial week-long ban on Tiger on July 2 because it believed the budget airline posed a "serious and imminent risk" to air safety.

Spokesman Peter Gibson says more questions are being thrown up as investigators go through Tiger's books.

He says the investigation was proving such a big task and that it could not be completed in original one-week time frame.

- AAP