[2025] IASC R01

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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 (7) 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 16 December 2024, at the request of Virgin Australia, the Commission issued
Resolution [2024] IASC R06, extending the date for utilisation of the capacity to 14 April 2025.
The Commission granted this extension as Virgin Australia demonstrated that the carrier was
prevented from fully utilising the capacity by a number of circumstances that could not reasonably
have been foreseen.

On 14 February 2025, Virgin Australia wrote to the Commission seeking an extension of the date
for utilisation of the capacity from 14 April 2025 until 25 October 2025. In its letter, Virgin
Australia indicated that on 17 December 2024, a 7.3-magnitude earthquake struck Vanuatu and, as
a result, demand for travel to and from Vanuatu is lower than forecasted for the Northern Summer
2025 scheduling season. Virgin Australia also confirmed that previous operational challenges had
now been resolved.

The Commission notes that Virgin Australia has utilised over 80 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 utilising the capacity by an unforeseen natural
disaster event.

In light of these circumstances, the Commission issues Resolution [2025] IASC R01 to provide
that the capacity allocated under Determination [2024] IASC 111 is to be utilised from no later
than 25 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: 7 March 2025
 

Genevieve Butler - Chairperson

Jane McKeon - Commissioner