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Tigerair quits Bali flights after Indonesia ruling

Staff Writer |
Tigerair Australia said it would quit flying to Bali permanently after being told by Indonesian authorities to switch to a new operating model.

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The budget unit of Virgin Australia Holdings had its permission to fly revoked last month, accused of breaking charter flight rules.

Virgin Australia had previously operated the flights but shifted them to Tigerair, aiming to restore its international division to profitability.

The surprise developments - Tigerair had been expected to resume flights to Bali on Friday - have underscored uncertainty about Indonesia's flight approval process and raised the question of whether others, particularly Indonesian airlines, will step into the fill the gap.

Bali is an Indonesian holiday island known for its beaches and rice paddies, and Australians tourists are its biggest market. Tigerair usually carries hundreds of passengers to Bali each day from Melbourne, Adelaide and Perth.

How much tourism revenue Indonesia may lose is unclear, however, as other airlines may take advantage of Tigerair's misfortune.

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