IASC: Five new capacity allocations granted in FY2016-17

International Air Services Commission (IASC), in its Annual Report 2016-17, reported (16-Oct-2017) five determinations allocating new capacity were made in the period, reflecting the expansion of overseas services by Australian carriers.

• Norfolk Island Airlines, a start up carrier, applied for and was issued unlimited passenger capacity to New Zealand. The carrier plans to offer twice weekly Boeing 737-300 service between Norfolk Island and Auckland, operated under a wet lease arrangement with Nauru Airlines, a foreign-registered carrier operating under an Australian air operator's certificate. As Norfolk Island Airlines is a new carrier and has not previously operated scheduled services, the IASC sought advice from the Department of Infrastructure and Regional Development to determine if the airline would reasonably be able to obtain the necessary regulatory approvals to operate on the New Zealand route. Likewise, as the actual carrier operating the services between Norfolk Island and Auckland would be Nauru Airlines, the IASC also sought advice if Nauru Airlines would be reasonably able to obtain the necessary regulatory approvals to operate the service. The department advised that they do not foresee any reason why Norfolk Island Airlines, or Nauru Airlines, will not be able to secure the necessary regulatory approvals. The carrierss operated their first service between Norfolk Island and Auckland on 17-Jun-2017. This service effectively replaces the Norfolk Island-Auckland flights which were operated by Air New Zealand until May-2017.
• Pacific Air Express, an Australian carrier which currently holds capacity allocations on to Vanuatu, Papua New Guinea and Nauru, applied for and was issued unlimited freight capacity to China. Subject to certain commercial considerations including the ability to obtain suitable slots, Pacific Air Express intends to commence its freight services between Australia and mainland China in Nov-2017. Pacific Air Express joins Qantas (which operates Sydney-Shanghai), Fedex and Polar Air Cargo in operating freight services between points in Australia and points in China. Pacific Air Express also renewed its freight capacity on the Nauru route and had its capacity allocation increased to unlimited frequency consistent with the amendments made to the Australia-Nauru air services arrangements.
• Qantas was allocated seven weekly frequencies of new capacity on the Vietnam route to enable Jetstar to operate services from Sydney and Melbourne to Ho Chi Minh City. Jetstar commenced its services to Ho Chi Minh City in May-2017. After returning some unused capacity on the Indonesia route in Apr-2017, Qantas applied for and was granted, in June-2017, 100 additional seats of passenger capacity on the route. [more - original PR]