V Australia, with its B777 operation, has been authorised by Australia’s International Air Services Commission to commence daily service between Australia and Fiji, replacing its Pacific Blue B737-NGs. Jetstar meanwhile was granted four times weekly service in the Commission’s draft determination, issued 20-Oct-2009.
In making the determination, the Commission noted: “The Commission considers that competition benefits would be greatest if V Australia was to operate daily B777-300 services and Jetstar four A321-213 services per week. An allocation of 907 seats per week to V Australia and 852 seats per week to the Qantas Group for Jetstar can achieve this outcome.
It would involve the allocation of all but one of the 1,760 seats per week of the available capacity. All other potential splits of capacity leave a higher residual of unallocated seats. The proposed split of capacity grants approximately equal amounts of the remaining available capacity to both carriers, providing equal scope for both carrier groups to grow consistent with paragraph 3.5 of the Minister’s policy statement.
It would lift the Virgin Blue Group’s share of Australian capacity entitlements to about 83% (compared with 65% now and over 90% if it had received the full allocation sought), with the Qantas Group having 17% (compared with nil now and about 30% if it had received all the allocation sought).”