Virgin Australia is on its way to Japan after the International Air Services Commission issued a draft determination awarding it one of two daily slots at Tokyo’s Haneda Airport for five years.
The determination, which still has to be finalized, is another defeat for Qantas after it lobbied strenuously for both slots at Haneda awarded to Australian carriers.
The IASC determination is conditional on Virgin fully utilizing the capacity, something the airline says it intends to do when it launches daily Airbus A330-200 services between Brisbane and Haneda from March 29.
The Aussie airline plans to partner with All Nippon Airways.
READ: Virgin Australia capable of servicing Tokyo Haneda
The commission found a competitive environment on the Japan-Australia route would most be fostered by the allocation of one frequency each to Qantas and Virgin.
“The operation of services by Qantas and Virgin Australia between Brisbane and the two Tokyo airports will likely increase price competition and market stimulation,’’ IASC said, adding that the decision would also broaden product choice.
“Allocating one frequency to each carrier is likely to see a broader promotion of trade and tourism, with the carriers promoting tourism to a wider area within Australia.
“The allocation of one frequency to each of the applicants will enable the dispersal of air transport services to a wider area within Australia.”
Virgin said it was pleased with the draft determination and said it would bring “strong competition and choice to the market”.
“We can’t wait to provide guests with the best value fares and our unique Virgin experience to Japan,’’ a spokesman said.
Qantas had argued that its rival would not be able to sustain services on the route but that argument foundered when the Department of Transport said the smaller carrier was “reasonably capable” of operating the route and obtaining all the relevant licenses and permits.
The Flying Kangaroo, which has until October 24 to make a submission on the draft determination, said it looked forward to adding more flights from Australia to Haneda.
“We will confirm whether these flights will operate from Melbourne or Sydney shortly,” a spokesman said.
Qantas operates 25 return flights a week to Japan and will launch a new seasonal service from Sydney to Sapporo in December.
Low-cost offshoot Jetstar operates 11 return flights per week, including from Cairns and the Gold Coast.
