Tigerair Australia abandons flights to Bali after government talks fail

Tigerair has withdrawn from operating flights to Bali, after failing to reach an agreement with Indonesian authorities.

Tigerair passengers pictured at Denpasar Airport. (Picture: Zul Edoardo)

The Virgin Australia-backed budget carrier Tigerair Australia has abandoned flights to Bali after less than a year flying the route after failing to reach an agreement with the Indonesian government on key regulatory issues.

Tiger was informed late on Thursday night that Indonesian authorities would not be providing Tigerair with the final approval needed to operate to and from Bali from today.

Tiger earlier today cancelled the resumption of services that had been disrupted following a dispute with the Indonesian government in mid-January.

It is understood the Indonesian government had been pushing the Melbourne-based airline to go through the costly process of obtaining a unique Air Operator’s Certificate to fly the route.

Tiger did not comment on the details, but said the solution offered by the Indonesian government would take at least six months to implement and would compromise the airline’s ability to offer low-cost airfares to travellers to Bali.

Tigerair Australia’s Chief Executive Officer Rob Sharp said: “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.

“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.

“Providing a reliable, low-cost service is critical for Tigerair Australia and our customers, and therefore our only option is to withdraw from flying to Bali altogether. We will continue to work with Virgin Australia to support any passengers still in Bali and needing to travel home to Australia. We will also provide full refunds to customers who were booked to travel to and from Bali with us.

“Again, we sincerely apologise to our customers who have been caught up in this and we will continue to work around the clock to support them as best we can.

“Tigerair Australia’s ambition to have a short haul international network remains and we will now work towards alternative opportunities,” Mr Sharp added.