Budget airline Tigerair Australia has announced on Friday that it would stop flying from Australia to Bali permanently. According to the company, the government of Indonesia has refused to provide them with the regulatory approval for the flights.

The low-cost airline, which is a budget subsidiary of Virgin Australia, adds that the Indonesian government also told them that they need an alternative regulatory solution for their operations to Bali. According to them, switching to a new operating model would take at least six months.

The company also said that this would compromise their service of low-cost airfares to tourists and travelers. So they decided to suspend flying to Bali permanently, which chief executive Rob Sharp said in a statement that it was their only option.

“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,” Tigerair Chief Executive Rob Sharp stated. The company also said in the statement that they would work with Virgin Australia to help any passengers who are still in Bali and need to come home to Australia. Moreover, those customers who had already booked flight tickets to Bali will also get full refund, the company said.

Last month, the Indonesian authorities did not allow Virgin Australia Holdings to fly due to the company’s failure to meet charter flight regulations.  This caused thousands of people to be stranded in Bali as well as interrupting tourists’ holiday plans to travel to the country.

The company was supposed to restart its flights to Indonesia on Friday. They said the government had already approved them of using their Airbus A320 aircraft.

But instead, this happened and the company said that Indonesian government gave them new administrative requirements, forcing them to cancel their flights to Indonesia completely. On the other hand, the government of Indonesia argued that the company actually breached its regulatory license.

“We understand the impact that this situation will have on passengers booked to travel to and from Bali with Tigerair, and we sincerely apologized to all affected passengers,” Sharp also pointed out in the statement, skynews.com.au reports.. “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.”

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