The International Air Services Commission (IASC) has advised recent applications by Qantas and Strategic Airlines for additional Australia to Indonesia capacity “has created a contested situation”.

“Qantas and Strategic Airlines have together sought more than the available capacity,” the IASC said. Days after Qantas applied for an allocation of 3,898 seats per week on the Indonesian route, Strategic approached IASC seeking 1,716 seats per week on the same route. The two airlines, along with any others who come out of the woodwork between now and 10 August 2010, will be asked to address how their use of the available capacity will affect competition, tourism, consumers, trade and industry structure. Upon receipt of this information, the IASC will invite submissions about the applications.