[2021] IASC R07

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On 28 November 2019, the International Air Services Commission (the Commission) issued Determination [2019] IASC 128 (the Determination) allocating 880 seats of capacity in each direction to Virgin Australia International Airlines Pty Ltd (Virgin Australia) on the Indonesia route.  The Determination includes several conditions including the requirement for the capacity to be utilised from no later than 29 March 2020 or from such other date approved by the Commission.  

Due to the COVID-19 pandemic impacts, including travel restrictions put in place by the Australian Government in March 2020, Virgin Australia was not able to commence the new services to and from Indonesia as originally planned.  In light of this, upon the request of Virgin Australia, the Commission issued Resolutions [2020] IASC R03 (17 April 2020); [2020] IASC R05 (19 June 2020); [2020] IASC R07 (7 December 2020); and [2021] IASC R04 (6 April 2021) extending the date of full utilisation of the capacity by Virgin Australia.  

On 29 October 2021, Virgin Australia wrote to the Commission seeking a further extension of the date of utilisation of the capacity from 31 October 2021 until the end of the Northern Summer 2022 scheduling season. 

Virgin Australia indicated in its application that it would resume short and long-haul international services in accordance with government and health advice, as well as the return of consumer demand.

Virgin Australia had indicated previously its strong desire to ‘retain the ability to utilise the capacity to ensure Australians have a choice and that Australian airlines are responsive to the needs of consumers’.  

The Commission continues to recognise that the COVID-19 pandemic and associated travel restrictions imposed by various countries have seriously disrupted the international operations of airlines and global competition worldwide.    

In light of these extraordinary circumstances, the Commission issues Resolution [2021] IASC R07 to provide that the capacity issued under Determination [2019] IASC 128 is to be utilised from no later than 30 October 2022, or such other date approved by the Commission.  The Commission will continue to monitor the airline’s ability to fully utilise the capacity on the route.

Dated:   4 November 2021
 

Genevieve Butler - Chairperson

Jane McKeon - Commissioner