AUSTRALIA. Perth Airport has agreed to a landmark deal with Qantas which will involve a multi-billion-dollar wave of investment to expand the airport’s capacity for more international and domestic flights. The move is seen as leading critical impetus to West Australia’s and the country’s tourism industry.
Under the 12-year contract, Perth Airport has an investment plan of approximately A$3 billion (US$1.99 billion) to develop new terminal facilities and a parallel runway which will contribute to economic activity and generate employment.
The deal is part of a A$5 billion capital investment programme by Perth Airport – the largest private infrastructure development in the Western Australian city. The project also includes two multi-storey carparks, major access roadworks and the airport’s first hotel.
As part of the plan, Qantas and Jetstar will move all airline operations to a new terminal in the Airport Central precinct. The relocation, along with the airline’s major investment in new aircraft, is expected to support the growth necessary to enhance Perth Airport and Western Australia as a key travel gateway for both domestic and international carriers. The developments will also allow Australians more options when travelling to Asia, Africa, India and Europe.
The two airlines will add 4.4 million seats to and from Perth per year when the new terminal comes into operation in 2031.
The new terminal will feature what is described as “world-leading travel experience” and more convenient domestic and international transfer, as well as modern check-in and bag drop facilities.
Qantas will collaborate with Perth Airport to develop a multi-lounge precinct for international and domestic passengers with a new signature design and bespoke dining and wellness programme.
Perth Airport will also invest in upgrades to Terminals 3 and 4, where Qantas currently operates its domestic and international flights, to expand capacity while the new terminals are under construction.
Starting September, Jetstar will relocate its domestic services to Terminal 2, bringing further growth opportunities for both airlines, before moving into the Airport Central terminal.
The renovation of Terminals 3 and 4 will allow Qantas to add services and more destinations from Perth, including Auckland and Johannesburg from mid-2025, subject to meeting border agency requirements.
The development programme also covers gate upgrades to allow more space for ultra-long-haul aircraft, including its Project Sunrise Airbus A350s which arrive in 2026.
Qantas and Perth Airport have also agreed on the need for and timing of the new parallel runway which is expected to be open in 2028. The additional runway will drive the growth of the critical resources sector and future-proof aviation in Western Australia.
Qantas CEO Vanessa Hudson commented: “This is the largest airport infrastructure deal in our history. It will enable us to create a world-class western hub and significantly expand our domestic and international services over the short, medium and long term.
“Not only will it allow us to bring hundreds of thousands more travellers to and through Western Australia each year, it will also make it easier for overseas tourists to connect to more destinations across Australia.
“Perth-London and Perth-Rome are two of the most popular flights on our international network, which gives us confidence in our strategy to ramp up WA flying over the next few years as we receive new aircraft and grow our fleet.
“The additional flying will see us create an estimated 700 new jobs in Western Australia across pilots, crew, engineering and airport staff.
“With the launch of Perth-Paris in July and Jetstar’s new services into Asia starting later this year, we have a pipeline of growth underway that will mean Perth is on track to become our second biggest international gateway behind Sydney.”
Perth Airport CEO Jason Waters said: “This is a special moment in the history of aviation in Western Australia as this agreement will unlock the future for both Perth Airport and Qantas. Qantas has some ambitious growth plans for its operations in Perth and we are thrilled to have the opportunity to push ahead together to realise this potential.
“Western Australians will now see the largest-ever private investment in an infrastructure development in Perth – a once in a lifetime investment programme that will completely change the face of Perth Airport over the next decade.
“Perth Airport’s plans will see more than A$5 billion invested in delivering new terminal facilities, a new parallel runway, two multi-storey carparks with associated roadworks, and our first airport hotel.
“This will create thousands of construction and on-going jobs, underpin the future growth of the FIFO-based resources sector, generate new tourism and trade opportunities, and deliver enormous ongoing benefits to Western Australia. Most importantly, it will deliver one airport for the people of Western Australia which will host all flight services giving them a seamless, world-class travel experience.”
Western Australian Premier Roger Cook added: “This commitment cements our place as the Western Gateway to Australia. By opening up new flights routes and adding millions of extra passenger seats each year, we’re positioning WA as a major tourist destination in the region.
“It will turn Perth Airport into a world-class travel hub for visitors and for Western Australians, and put Perth onto the world stage for travellers. It’s part of our plan to diversify WA’s economy, create long-term jobs and set our State up for the future.”
The agreement resolves all outstanding commercial issues in dispute between Perth Airport and Qantas, the partners noted. ✈
