Virgin Australia likely to receive Tokyo Haneda slot

October 4th 2019

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Australian competition watchdog rejects Qantas request for two Haneda slots. Read More »

Virgin Australia’s (VA) request to receive a Tokyo Haneda slot has won backing from competition watchdog, the Australian Competition and Consumer Commission (ACCC).

The ACCC backed VA in a letter to the country’s International Air Services Commission (IASC), which will determine how to allocate Australia’s recently awarded two daytime slots at Tokyo Haneda.

Qantas has requested both slots. VA has asked for one so it can debut in the Japanese market and form a code-share partnership with All Nippon Airways (ANA). Qantas and Japan Airlines (JAL) have a partnership. Increased competition could be grounds for Qantas and JAL to form a joint venture.

“Allocating one frequency between Australia and Haneda to Virgin Australia and one to Qantas would promote competition to a much greater extent than allocating both frequencies to Qantas,” the ACCC wrote.

In a follow-up submission, Qantas said its proposal would generate the most benefit. It carries no risk since it can quickly add Haneda flights to its network because it already serves the airport and others in the country, giving it contacts and contracts to leverage. In contrast, Virgin has no presence in Japan.

Qantas argues VA does not need a Haneda slot to enter the Japanese market because VA could fly to Tokyo Narita or any other Japanese city. “No other carrier has commenced services to Japan using Haneda Airport as its inaugural destination,” Qantas wrote.