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THE European Commission has confirmed it will not block the December 7 launch of Virgin Atlantic’s Australia service despite the carrier not having official clearance.

Virgin is launching the Heathrow-Sydney flight after the UK Government brokered a new air deal with Hong Kong to increase capacity between the two countries and allow Virgin to use Hong Kong as a stop-off point to Australia. Cathay Pacific has been given access to the Heathrow-New York route in return.

However, the EC is still debating whether to ratify the deal because it could be deemed discriminatory against non-British EC carriers.

An EC spokesman said: “We will not stand in Virgin’s way, but we find it difficult to accept a deal between a member and a third country without the ‘community designation clause’.”

The clause stipulates EC carriers, such as Air France and Lufthansa, should have the opportunity to compete on routes negotiated by members and third-party countries.

Cathay will not give a start date until the EC has cleared the deal, and is reportedly unhappy with Virgin’s decision to press ahead with a date.

But a Virgin spokeswoman said: “The agreement was made in line with the draft EC requirements and is pro-competition and pro-consumer so we do not envisage any problems.

“It is not out of the ordinary - we started our fifth Shanghai service on the same basis.” 

Virgin will provide stiff competition to British Airways and Qantas on the kangaroo route.

It will operate a daily service using an Airbus A340-600, installed with its new Upper Class flat-bed. The carrier had its knuckles rapped earlier this month for advertising the flatbed across its routes, despite it only being available on a handful of services.