[2020] 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 on the Indonesia route to Virgin Australia International Airlines Pty Ltd (Virgin Australia).  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 travel restrictions imposed by the Australian Government in March 2020, in order to prevent the further spread of the coronavirus (COVID-19), Virgin Australia has not been able to commence its new services on the Indonesia route as originally planned.  In light of this, upon the request of Virgin Australia, the Commission extended the date of utilisation to 15 June 2020.  On 18 June 2020, Virgin Australia requested a further extension of the time of the utilisation of the capacity to 27 March 2021.  On 19 June 2020, the Commission made Resolution [2020] IASC R05 which provides that the capacity allocated in Determination [2019] IASC 128 is to be utilised from no later than 31 October 2020 or from such other date approved by the Commission.  

On 2 November 2020, as part of its capacity utilisation report to the Commission, Virgin Australia indicated that due to the COVID-19 pandemic impacts, including current travel restrictions, it remains unable to utilise this capacity. In light of this, Virgin Australia has requested the issue of a resolution extending the date for utilisation of the capacity from 31 October 2020 to 31 October 2021, or such other date as subsequently approved by the Commission.

The Commission recognises that COVID-19 pandemic and the associated travel restrictions imposed by various countries have seriously disrupted the international operations of airlines worldwide.  In light of these extraordinary circumstances, the Commission issues Resolution [2020] IASC R07 to provide that the capacity issued under Determination [2019] IASC 128 is to be utilised from no later than 31 March 2021, or such other date approved by the Commission. The Commission will continue to monitor the airline’s ability to utilise the capacity on the route.

Dated:   7 December 2020    
 

Ian Douglas - Chairperson

Karen Gosling - Commissioner