The Northern Territory's biggest airline has been grounded over safety concerns in a move that will affect hundreds of passengers.
Last night the Civil Aviation Safety Authority (CASA) told Hardy Aviation to ground all of its 32 planes.
Managing director John Hardy says CASA is not satisfied with the company's pilot training and wants it to use a different flight simulator.
He says he is shocked by the decision.
"How is the Northern Territory going to be serviced? I am really flabbergasted by their action, they're just diabolical," he said.
"Maybe they've got some concerns with us and we're working through them, most of it's administrative I think, and we'll work through it but to shut the place down just while they flex their muscles with us is quite disappointing." Hardy Aviation was due to conduct charter flights this weekend and the company says hundreds of passengers will be affected by the suspension of its regular services next week.
The company says it is in the process of informing passengers and its 125 staff members about the grounding.
It comes days after one of Hardy's services, Fly Tiwi, had its planes grounded because two senior pilots failed a qualifications test.