Qantas and Perth Airport Strike Agreement to Boost Australia's Aviation Sector
Qantas and Perth Airport have reached a landmark commercial agreement set to catalyze a multi-billion-dollar wave of investments and enhance both international and domestic flights, significantly boosting Australia’s tourism industry. This 12-year agreement will see Perth Airport invest around $3 billion in new terminal facilities and a new parallel runway, which is expected to generate immediate and ongoing economic growth and job creation.
The agreement forms part of a broader $5 billion capital investment program by Perth Airport, marking the largest private infrastructure development in Perth's history. This ambitious plan includes the construction of two multi-storey carparks, major access roadworks, and the airport’s first hotel, promising substantial upgrades to the airport's facilities and overall passenger experience.
As part of the agreement, Qantas and Jetstar will relocate all services to a new terminal in the Airport Central precinct. This move, combined with the airline’s major investment in new aircraft, will help transform Western Australia into a significant domestic and international hub for the airlines. The plan aims to add 4.4 million seats annually to and from Perth by 2031, substantially enhancing inbound tourism and offering Australians more travel options to destinations in Asia, Africa, India, and Europe.
The new terminal is designed to provide a world-leading travel experience, featuring seamless domestic and international transfers, as well as state-of-the-art check-in and bag drop facilities. Qantas is collaborating with Perth Airport on developing a multi-lounge precinct for international and domestic passengers, incorporating a new signature design, bespoke dining, and wellness initiatives. Additionally, Qantas plans to construct a new engineering hangar in the Airport Central precinct.
Perth Airport will also invest in upgrades to Terminals 3 and 4, currently home to Qantas domestic and international flights, to create additional capacity while the new terminal is under construction. Jetstar will relocate its domestic services to Terminal 2 from September 2024, unlocking further growth opportunities for both airlines before moving into the new Airport Central terminal upon its completion.
These upgrades will enable Qantas to expand its services and add new destinations from Perth, including Auckland and Johannesburg from mid-2025, subject to meeting border agency requirements. The works will also include gate upgrades to accommodate ultra-long-haul aircraft, including Qantas' Project Sunrise Airbus A350s, expected to arrive from 2026.
A crucial part of the agreement is the construction of a new parallel runway, anticipated to open in 2028. This runway will support further growth for Western Australia's critical resources sector and future-proof aviation in the region.
Qantas CEO Vanessa Hudson highlighted the significance of this agreement, describing it as the largest airport infrastructure deal in the airline's history. She emphasized the expected creation of an estimated 700 new jobs in Western Australia across various sectors, including pilots, crew, engineering, and airport staff. Hudson also noted the strategic importance of the Perth-London and Perth-Rome flights, which underpin the airline's confidence in expanding WA flying over the next few years as they receive new aircraft and grow their fleet.
Perth Airport CEO Jason Waters expressed enthusiasm for the historic agreement, underscoring the transformative potential of the investment program. Waters highlighted that the investment would not only change the face of Perth Airport but also create thousands of construction and ongoing jobs, bolster the FIFO-based resources sector, and generate new tourism and trade opportunities.
Western Australian Premier Roger Cook welcomed the agreement, emphasizing its role in positioning Western Australia as the Western Gateway to Australia. He noted that the influx of new flight routes and additional passenger seats would elevate Perth's status as a major tourist destination and turn Perth Airport into a world-class travel hub.
This agreement resolves all outstanding commercial disputes between Perth Airport and Qantas, marking a new era of collaboration and growth for both entities and setting the stage for a significant expansion of Western Australia's aviation sector.
