Low cost carrier Tigerair Australia decided on February 3 to permanently suspend all of its operations into Bali out of Australia. The airline was flying on a regular daily basis between Adelaide, Melbourne and Perth to Denpasar with an Airbus A320.
According to the airline website, after promising to start again its flights in January and on February 2, the carrier posted a note. On the website, the airline’s management “been overnight informed” that Indonesian authorities did not provide Tigerair Australia with the final approval needed to operate to and from Bali from Friday 3 February 2017. The airline had suffered regular flight cancellation over the last three weeks.
In the statement, Tigerair Australia explained that “The Indonesian authorities have informed Tigerair that they required an alternative regulatory solution for Tigerair’s operations to Bali. This solution would take at least six months to implement and would compromise the airline’s ability to offer low-cost airfares to travellers to Bali”.
“As a result of this development, Tigerair Australia has made the difficult decision to withdraw from flying between Australia and Bali permanently, effective from that date”.
Communication deficiency from Tigerair left over 5,000 passengers stranded. All passengers flown on Tigerair have since been reimbursed while some of them were transferred on Virgin Australia, the main shareholder of the low cost carrier.
Indonesian regulators justified their decision by telling that Tigerair Australia current flights violated air regulations imposed on “charter operations” by selling tickets on line to people already in Indonesia. After the Indonesian government extended a grace period to Tigerair to solve its administration problems, the airline’s management found the costs to high to sustain an operation. Tigerair Australia had some 90,000 seats on sale annually to Bali. Over 5,000
They are however half a dozen airlines still flying between Bali and Indonesia. Jetstar/Qantas offer daily frequencies to Adelaide, Brisbane, Darwin, Melbourne, Perth and Sydney as well as four times per week to Cairns; AirAsia flies up to five times daily to Bali from Darwin and Perth; Garuda flies to Melbourne, Perth and Sydney; Virgin Aurstralia flies to Sydney and Brisbane while newcomer Batik Air is launching two daily flights from Perth to Denpasar from March. They are up to 22 to 23 daily flights between Australia and Bali.
Although they will continue to have plentiful of flights between Australia and Indonesia, Indonesia slow decisions can -in the case of tourism- only slowdown travel business.