Updated Air Services agreement between Australia and Indonesia

[Harrison_133]

One interesting point in the Virgin submission: Avalon is no longer considered a major port under the Indonesia bilateral, so Jetstar can now enjoy unrestricted capacity on AVV-DPS while deploying that capacity elsewhere.

 

[muppet]

Responses to IASC addressing the additional criteria for the extra Indonesia capacity have been uploaded.

Qantas Group submission:

https://www.iasc.gov.au/sites/default/files/documents/20261105-public-version-iasc-indonesia-supplementary.pdf

Virgin Australia submission:
https://www.iasc.gov.au/sites/defau...ation-for-capacity-on-the-indonesia-route.pdf

Interested parties now have until 20 November to comment on the airlines' submissions.

I see VA’s point that QF Group keeps getting the lions share of these allocations, but VA is just not offering anything worthwhile. Just more Bali from PER, MEL, BNE and SYD - whereas QF is offering new routes and more frequencies to CGK.

 

[Saab34]

I see VA’s point that QF Group keeps getting the lions share of these allocations, but VA is just not offering anything worthwhile. Just more Bali from PER, MEL, BNE and SYD - whereas QF is offering new routes and more frequencies to CGK.

But QF can dump those new routes and shift all capacity back to Bali whenever they please

I think total market share is important here.

 

[Harrison_133]

I see VA’s point that QF Group keeps getting the lions share of these allocations, but VA is just not offering anything worthwhile. Just more Bali from PER, MEL, BNE and SYD - whereas QF is offering new routes and more frequencies to CGK.

To be fair, the Qantas Group is only adding one "new" route (WSI-SYD). Even then, that is just adding extra capacity into the Sydney area.

PER-CGK might be new to the Qantas network in the same way PER-DPS is new to the Virgin network, but it is not an unserved market. Batik is already there.

While I do see merit in diversifying Jakarta options, and more Bali flying is undoubtedly boring, the vast majority of demand is still to Bali, so it's no surprise the airlines will go chasing that market.

But QF can dump those new routes and shift all capacity back to Bali whenever they please

I think total market share is important here.

The QF Group also have more wriggle room to shift their capacity around than VA does.

Avalon being removed as a major city gives the QF Group an extra 1160 seats per week that they can now use elsewhere.

The Enhanced Regional Package provisions have also been removed, so the Qantas Group now has a grandfathered allocation of 2320 seats per week that they can operate without restriction, so they no longer need to operate that capacity via or beyond to a point in Australia outside of the major gateways. Ironically, these are provisions that meant Virgin lost out on the allocation.