Budget carrier Tigerair Australia has confirmed it has pulled out of the Bali market permanently after failing to reach a final agreement with Indonesian air regulators.
The airline said it was forced to change its operating model to ensure continued service, something it says is impractical and not cost effective for a LCC.
Regulators halted Tigerair’s Bali flights last month due to new administrative requirements over its air operator’s permit which Indonesia claimed only covered charter flights.
The axing of Bali flights takes immediate effect.
"We have been advised by ¬Indonesian authorities that in order to continue operating our flights to Bali, we would have to transfer to a new operating model that would take at least six months to implement and would compromise our ability to offer low-cost airfares to Australians,” Tigerair Australia chief executive Rob Sharp said.
"Providing a reliable, low-cost service is critical for Tigerair Australia … our only option is to withdraw from flying to Bali altogether.”
"We understand the impact that this situation will have on passengers booked to travel to and from Bali with Tigerair, and we sincerely apologise to all affected passengers.
The decision is likely to affect thousands of customers with flight reservations for the coming months, which Tigerair will refund in full it said.
Tigerair began flying to Bali less than a year ago.
