Tigerair cancels flights to and from Bali

Budget airline Tigerair Australia has cancelled flights to and from Bali as it negotiates with the Indonesian government, leaving hundreds of passengers stranded.

All four flights were cancelled on Wednesday and Tiger is reviewing its daily return fights to Bali from Melbourne., Perth and Brisbane until further notice.

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

"Tigerair was and is in compliance with all original conditions imposed by the Indonesian Government on the operation of its Bali services," the airline said in a statement.

"Tigerair is working with the relevant Indonesian authorities to meet the new requirements as soon as possible."

The airline said it is working to accommodate customers with an alternative carrier or a full refund.