Hundreds of passengers have been stranded in Bali after Indonesia said Tigerair did not have permission to operate some flights to Australia, BBC reports.
Flights between Bali and Australia will not run until at least Friday following the "new requirements", Tigerair said.
Indonesia disputed Tigerair's claim the rules were new, saying the airline only had permission for charter flights.
More than one million Australians visit Indonesia each year, with most heading to Bali, a popular holiday island.
About 700 passengers were affected by the cancellations on Wednesday, while a similar number will be grounded on Thursday, the airline said.