A contest between Qantas and Virgin Australia for new flight capacity to Indonesia is heading to the International Air Services Commission, with both airlines seeking more seats than are available under the expanded air services agreement.
The agreement allows an additional 5,000 seats per week in each direction for Australian airlines. Qantas has applied for 4,539 seats per week in each direction, while Virgin is seeking 5,086.
The Commission says there is not enough capacity to grant both applications as requested. It has asked the airlines to address additional public benefit criteria by 5 November. Once their responses are received, the Commission plans to publish them and invite submissions from interested parties.
Virgin’s application proposes more services to Denpasar, including additional frequencies from Melbourne, Sydney and Brisbane, plus a new Perth–Denpasar service. Its proposed schedule includes Perth flights from June 2027, subject to regulatory and operational approvals.
Qantas and Jetstar’s application would support additional services from December 2026, including new routes and increased frequencies between Australia and Indonesia.
The decision could shape the next phase of Australian airline competition in Indonesia, including the options available to travellers heading to Bali. Neither airline’s proposed services are confirmed until the capacity allocation and other required approvals are in place.
