The competitors watchdog has thrown its help behind Virgin Australia over Qantas Airways as the 2 airline companies compete for permission to run further flights to Australia’s hottest vacationer vacation spot, Bali.
Australia’s Worldwide Air Providers Fee acquired purposes from Qantas’ funds subsidiary Jetstar and Virgin to be granted the proper so as to add virtually 2500 weekly seats to their providers between Indonesia and Australia. The rights have develop into obtainable underneath the bilateral air rights settlement between the international locations.
The competitors watchdog has backed Virgin over Qantas within the battle for extra flights to Bali. Credit score: Brendon Thorne
Qantas would really like 2320 extra seats for further Jetstar providers on a brand new route from Cairns to Denpasar by way of Melbourne, and one other from Adelaide to Denpasar by way of Perth. Virgin has utilized for all of the 2464 obtainable weekly seats to function flights from the Gold Coast and Adelaide to Denpasar by way of Perth.
The Australian Competitors and Shopper Fee submitted its help of Virgin’s software to the air providers fee on Wednesday as a result of it could foster competitors. The ACCC argued Jetstar was already the most important airline on routes between the 2 international locations in 2023 and when mixed with Qantas, operated 55 per cent of obtainable seats in 2023 to Virgin’s 15 per cent.
“The ACCC considers that the proposal from Virgin Australia would look like extra conducive to fostering a aggressive surroundings, and a broader distribution of capability, than the proposal from Qantas,” the watchdog’s submission says.
Qantas submitted that it deserves the flights as a result of Jetstar is the largest provider of Australians to Bali and affords essentially the most aggressive fares.
‘The ACCC anticipates that this new competitors would possible lead to higher outcomes for passengers by way of decrease costs and improved providers.’
Australian Competitors and Shopper Fee
Eight airways at present fly between Australia and Indonesia. Jetstar is the one Australian airline that flies between Perth and Denpasar, with three every day providers. If Virgin is granted the additional flights, will probably be capable of fly twice every day on this route. Jetstar can also be the one airline that flies between Denpasar and Cairns, and wish to make this route every day if granted the rights. It additionally holds 70 per cent of the seat capability between Denpasar and Melbourne.
“This proposal would introduce Australian competitors between Perth and Denpasar, in addition to cut back Jetstar’s dominance on providers between Adelaide and Denpasar. It might additionally introduce competitors for home connections between Gold Coast and Perth … The ACCC anticipates that this new competitors would possible lead to higher outcomes for passengers by way of decrease costs and improved providers,” the ACCC mentioned.
