Aviation regulators grounded a subsidiary of Singapore-based Tiger Airways Saturday for violations of safety regulations.
Australia's Civil Aviation Safety Authority said Tiger Airways Australia has twice flown under the minimum allowed altitude.
The ban, the first imposed by CASA in Australian aviation history, is for an initial five days. If the company does not address CASA's concerns, officials can apply for an extension to allow for safety investigations.
CASA said allowing the airline to continue flying would pose a serious and imminent risk to air safety.
Rivals Virgin Australia and Jetstar announced Saturday that they will schedule additional flights to accommodate some of the stranded passengers.