Tigerair Australia insists it hasn't breached any regulations in Indonesia after the country's government suspended the budget airline from flying in and out of Bali's Denpasar Airport.
Around 350 passengers remain stranded on the island as the airline frantically works to resolve the stoush, more than 1700 customers have been affected since the dramas began earlier this week.
The issues are not safety related, but involve disagreements over Tigerair's current licensing agreement in Indonesia and the level of licensing they hold to sell tickets.
"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," said CEO Rob Sharp in a statement.
"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."
The airline is hoping the Indonesian Government will grant them a grace period so they can continue to fly passengers from Bali to Australia while the new requirements are discussed.
"We are working constructively with the Indonesian government to commence flying to Bali again as soon as possible and work through the new requirements they have given us this week."
"In the meantime, we are doing everything we can to support our customers, including transferring them to Virgin Australia flights, providing accommodation and refunds.
"We understand this is a busy period during school holidays and we sincerely apologise for the inconvenience this has caused."
Written by: @amydrewsnews