[2024] IASC R06

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On 28 May 2024, the International Air Services Commission (the Commission) issued Determination [2024] IASC 111 (the Determination) allocating 1,304 seats of passenger capacity per week to Virgin Australia International Airlines Pty Ltd (Virgin Australia) on the Vanuatu route, to operate an additional seven services per week using Boeing 737 aircraft configured with 176 to 182 seats. The Determination includes several conditions including the requirement for the capacity to be utilised no later than 31 December 2024 or such other date approved by the Commission.

On 26 November 2024, Virgin Australia wrote to the Commission seeking an extension of the date for utilisation of the capacity from 31 December 2024 until 14 April 2025. In its letter, Virgin Australia indicated that while it has operated five of the seven weekly services using the capacity allocated, it has not been able to fully utilise the allocated capacity due to operational requirements.

On 29 November 2024, the Commission wrote to Virgin Australia seeking further information on the operational matters that have impacted the airline’s ability to fully utilise its capacity allocation. On 6 December 2024, Virgin Australia provided the requested information, on a confidential basis, including the airline’s plans to fully utilise the capacity by 14 April 2025.

The Commission notes that Virgin Australia has utilised over 70 per cent of the capacity allocated under the Determination. Based on the information provided by Virgin Australia, the Commission considers that the carrier was prevented from fully using the capacity by a number of circumstances that could not reasonably have been foreseen.

In light of these circumstances, the Commission issues Resolution [2024] IASC R06 to provide that the capacity allocated under Determination [2024] IASC 111 is to be utilised from no later than 14 April 2025, or such other date approved by the Commission. The Commission will continue to monitor the airline’s ability to fully utilise the capacity issued under the Determination.

Dated: 16 December 2024

 

Genevieve Butler - Chairperson

Jane McKeon - Commissioner