Tigerair Australia remained unable to operate flights to Bali on Thursday, warning that the standstill could continue until early Friday morning, the airline said in a statement.
On Wednesday, Tigerair Australia cancelled four flights to Denpasar International Airport, citing new administrative requirements from Indonesia's government.
Affected customers in Bali will be transferred to Virgin Australia flights this week and will be provided accommodation, Tigerair Australia CEO Rob Sharp stated on Thursday, apologizing for the inconvenience during the busy school holiday period.
The airline currently has approval to operate between Australia and Bali until 25 March 2017, under which it can only sell tickets Down Under, but Prime Minister Joko Widodo's government has imposed new rules this week, Sharp explained.
"If the Indonesian government does not wish to honor the current agreement, we are asking them to give us a grace period so that we can continue to fly while we work through the new requirements together. This would help us to support our customers who make an important contribution to tourism in Indonesia."
In the meantime, the airline is continuing talks with Indonesian officials.