ACCC backs Virgin over Qantas for extra Bali flights

The competition watchdog has thrown its support behind Virgin Australia over Qantas Airways as the two airline businesses compete for permission to run extra flights to Australia’s most popular tourist destination, Bali. Australia’s International Air Services Commission received applications from Qantas’ budget subsidiary Jetstar and Virgin to be granted the right to add almost 2500 weekly seats to their services between Indonesia and Australia. The rights have become available under the bilateral air rights agreement between the countries. Qantas would like 2320 additional seats for extra Jetstar services on a new route from Cairns to Denpasar via Melbourne, and another from Adelaide to Denpasar via Perth. Virgin has applied for all the 2464 available weekly seats to operate flights from the Gold Coast and Adelaide to Denpasar via Perth. The Australian Competition and Consumer Commission submitted its support of Virgin’s application to the air services commission on Wednesday because it would foster competition. The ACCC argued Jetstar was already the largest airline on routes between the two countries in 2023 and when combined with Qantas, operated 55% of available seats in 2023 to Virgin’s 15%. “The ACCC considers that the proposal from Virgin Australia would appear to be more conducive to fostering a competitive environment, and a broader distribution of capacity, than the proposal from Qantas,” the watchdog’s submission says.<br/>