[2018] IASC R01

On 17 June 2016, the Commission’s delegate issued Determination [2016] IASC 106 (the Determination) allocating to Virgin Australia 1,925 seats of capacity on the China route. The Determination is subject to certain conditions including the requirement to fully utilise the capacity from no later than 1 June 2017, or such other date approved by the Commission.

On 7 June 2017, upon Virgin Australia’s request, the Commission extended the date of utilisation to 24 March 2018, or such other date as may be approved by the Commission.

On 24 May 2018, Virgin Australia requested to extend the date of utilisation of the capacity allocation on the China route to 30 March 2019.

The Commission notes that in December 2016, the Government authorities of Australia and China agreed to liberalise the air services arrangements between the two countries permitting the designated airlines of their respective countries to determine the frequency, capacity and aircraft type to be operated between Australia and China. This means there are no longer restrictions on the capacity entitlements which the designated airlines of both countries could operate on the Australia-China route.

In light of the above, as requested by Virgin Australia, the Commission resolves to extend the date of utilisation of the capacity allocated to Virgin Australia to 30 March 2019 or such other date approved by the Commission.

Dated: 15 June 2018

IAN DOUGLAS - Chairperson

JAN HARRIS - Commissioner

KAREN GOSLING - Commissioner