[2024] IASC R07

 PDF version 

On 18 June 2024, the International Air Services Commission (the Commission) issued Determination [2024] IASC 117 (the Determination) allocating to Qantas Airways Limited (Qantas) 1,798 seats of passenger capacity per week on the Vanuatu route. Qantas planned to operate services utilising a combination of Boeing 737 aircraft configured with 174 seats and Embraer E190 aircraft configured with 97 seats under a wet-lease arrangement with Alliance Airlines. During periods of peak demand, Qantas intended to operate up to five weekly services using Boeing 737 aircraft, and its wholly-owned subsidiary, Jetstar Airways Pty Limited, planned to operate up to four weekly services using Airbus A321 NEO aircraft configured with 232 seats. The Determination includes several conditions including the requirement for the capacity to be utilised no later than 31 January 2025 or such other date approved by the Commission.

On 28 November 2024, Qantas wrote to the Commission seeking an extension of the date for utilisation of the capacity from 31 January 2025 until 31 October 2025. In its letter, Qantas indicated that while the Qantas Group (Qantas and Jetstar) have firm plans to operate seven of the nine weekly services using the capacity allocated, it has not been able to fully utilise the allocated capacity due to operational assessments.

On 3 December 2024, the Commission wrote to Qantas seeking further information on the airline’s plans to introduce and operate the unutilised capacity, which the airline provided on 10 December 2024.

The Commission notes that the Qantas Group has utilised over 80 per cent of the capacity allocated under the Determination. Based on the information provided by Qantas, the Commission considers that the carrier was prevented from fully using the capacity due to circumstances that could not reasonably have been foreseen.

In light of these circumstances, the Commission issues Resolution [2024] IASC R07 to provide that the capacity allocated under Determination [2024] IASC 117 is to be utilised from no later than 31 October 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