Around 700 travellers were affected by cancellations on Wednesday (January 11) after Indonesian authorities claimed the low-cost carrier did not have permission to operate some flights to Australia.
A similar number of passengers are expected to be grounded today (January 12) and services between Bali and Australia will not run until at least Friday following the "new requirements", Tigerair said.
Indonesia disputed Tigerair’s claim that the rules enabling them to operator to Australia had been newly introduced, saying the airline only had permission for charter flights.
"We are working constructively with the Indonesian government to commence flying to Bali again as soon as possible and to work through the new requirements they have given us this week," Rob Sharp, Tigerair’s
Australia boss said in a statement to the BBC.
"If the Indonesian government does not wish to honour 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."
Indonesian transport ministry spokesperson, Bambang Ervan said Tigerair had permission to operate "charter flights" but it did not have clearance to run "regularly scheduled conventional flights".
"However, we found out that Tigerair had sold regularly scheduled conventional flight tickets from and to Bali," Ervan told the BBC.
"They have broken AOC129 requirements. Yes we have given them a notification this week that they have broken the requirements. But this doesn’t mean that these are new requirements, otherwise all other airlines would have been impacted."
Tigerair said its current cancellations were made "to provide certainty and notice to our customers", but continued to say its five remaining flights scheduled for Friday were under review.
The low-cost carrier added that Virgin Australia would operate two replacement flights from Bali today (January 12).