Jetstar Soars Ahead in the Bali Capacity Battle

In the skies of international travel, a new chapter unfolds as Jetstar emerges victorious over Virgin Australia in the quest for additional capacity to go to the tropical paradise of Bali. The International Air Services Commission (IASC) has cast its draft determination, proposing to bestow upon Jetstar a weekly gift of 2,320 passenger seats. In comparison, Virgin’s plea for 2,464 seats has been gently set aside. This pivotal decision paves the way for Jetstar to unfurl its wings with ten new weekly services to Bali.

The tussle for the skies began in November, when both the Qantas Group and Virgin sought to expand their horizons to Denpasar. The IASC, with a discerning eye, has leaned towards Qantas and Jetstar, citing their robust capability to secure the necessary licences and approvals to service the route effectively.

Despite this setback, Virgin Australia’s existing operations remain unscathed, with the ability to utilise their current capacity allocations intact. On the other hand, Qantas is gearing up to launch daily Jetstar services connecting Cairns–Melbourne–Denpasar and three-weekly flights from Adelaide–Perth–Denpasar aboard their sleek A321LRs. Virgin had envisioned a duo of daily services from the Gold Coast and Adelaide to Bali via Perth, but those plans now hang in the balance.

A Qantas Group spokesperson welcomed the draft determination, heralding it as a harbinger of more affordable travel options for Australians yearning for Bali’s shores. Meanwhile, a Virgin spokesperson acknowledged the IASC’s decision and supported ongoing negotiations to enhance capacity between Australia and Indonesia.

The decision unfolded under the watchful eyes of the Australian Competition and Consumer Commission (ACCC), which had championed Virgin’s cause, advocating for increased competition and consumer choice. The Transport Workers Union (TWU) and the Flight Attendants’ Association of Australia (FAAA) also supported Virgin, arguing that utilising Australian-based crews would bolster local employment.

ACCC General Manager Katie Young opined that entrusting the flights to Virgin would invigorate competition, particularly noting that Perth–Denpasar would mark Virgin’s inaugural international service from the West Coast post-pandemic. Young’s vision included a competitive landscape that would diminish Jetstar’s dominance and foster domestic connectivity between the Gold Coast and Perth.

As the deadline for submissions on the draft determination looms on the horizon—20 June—the IASC has expedited the process, halving the usual ten-day submission period to a brisk five business days. This acceleration reflects the Commission’s consideration of the commercial stakes and the passage of time.

The skies above Bali are witnessing a dynamic shift, with Jetstar ascending and Virgin Australia navigating the currents of change. As the final determination approaches, the aviation industry and travellers alike await the outcome that will shape the future of air travel to one of the world’s most beloved destinations.