All Tigerair flights in and out of Bali on Thursday have been cancelled as the airline’s dispute with the Indonesian government drags into a second day.

However, the airline is able to bring passengers back from the holiday island for the next four days. Tigerair chief executive Rob Sharp accused the Indonesians of not honoring a 12-month agreement struck in March last year. Passengers on services that will not be operated on Thursday and passengers that will be on board Virgin’s replacement flights on Friday and full refund will be contacted directly by Tigerair. Mr Sharp said “Tigerair Australia currently has approval from The Director General Air Communication and Director Air Transport to operate between Australia and Bali until 25 March 2017.”

“This involves selling tickets in Australia between Australia and Bali. Under the existing agreement, we are not able to sell tickets in Indonesia and we are fully compliant with this.”Mr. Sharp added, “we are not proposing any changes to the agreement – we are operating under the same approval we have been for the last 8 months.”

The decision was made after the Indonesian government imposed new conditions on Tigerair over its access to Denpasar airport.