Perth Airport has settled a long-running tiff with Qantas over the relocation of its airport terminal, striking a mammoth 12-year agreement worth around $3 billion – the largest in the airline’s history.
Perth Airport has settled a long-running tiff with Qantas over the relocation of its airport terminal, striking a mammoth 12-year agreement worth around $3 billion – the largest in the airline’s history.
The spend by Perth Airport will deliver new terminal facilities and a new, parallel runway. Qantas will build a new engineering hangar in the area.
Qantas and Jetstar will relocate all services to a new terminal in the Airport Central precinct which the airline says will enable the growth required to turn WA into a major domestic and international hub for airlines.
The pair plan to add 4.4 million seat to and from Perth annually by the time the new terminal opens in 2031.
Perth Airport will also invest in upgrades at Terminal 3 and Terminal 4 – currently home to Qantas domestic and international flights, to create additional capacity while the new terminals are being built.
The airline said these upgrades would allow Qantas to add services and more destinations from Perth, including Auckland and Johannesburg from mid-2025 subject to approvals.
The works will also include gate upgrades to accommodate ultra-long-haul aircraft including Qantas’ Project Sunrise Airbus A350s which are expected to launch in 2026.
A parallel runway will be opened in 2028, and Jetstar’s domestic services will be relocated to T2 from September this year.
Qantas chief executive Vanessa Hudson said the agreement was a landmark moment for the company and state.
“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,” she said.
“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 it was a historic time in the history of WA aviation, and Premier Roger Cook said the commitment cemented the state’s place as a ‘western gateway to Australia’.
“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,” Mr Waters said.
Qantas noted the agreement resolved all outstanding commercial issues between the airport and airline.
“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,” Mr Cook said.
“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.”
“Western Australians will now see the largest-ever private investment in an infrastructure development in Perth – a once in a lifetime investment program that will completely change the face of Perth Airport over the next decade.
The historic commercial agreement will form part of a $5 billion capital investment program by the airport – the largest private infrastructure development in Perth history – which will also deliver two multi-storey carparks, major access roadworks and an airport hotel.
Landmark moment
Representatives from the state's tourism industry were buoyed by this morning's news.
Tourism Council WA chief executive Evan Hall said the commercial agreement brought certainty and investment including Perth Airport investing $3 billion in terminal facilities and a runway as part of the agreement.
He said Jetstar’s move to terminals T1 and T2 at Airport Central would free capacity to expand direct international services inbound to Perth and onwards to regional WA.
“A key outcome of the new commercial arrangement is a significant expansion in aviation capacity to attract new international routes, both in the short term and over time,” he said.
“Ultimately, a single airport for international and interstate visitors with easy connections to regional WA services, will create a seamless transfer for visitors and enhance international tourism to Perth and regional WA.”
Mr Hall said it was best practice to have a single airport for visitors with international and domestic services closer.
“The installation of the Airport Central train station and major road developments will provide an improved entry experience for airplane passengers to the Perth CBD,” he said.
“The state and federal governments have significantly invested in transport connections to Perth Airport.”
The deal was also welcomed by the Australian Hotels Association, with its chief executive Bradley Woods saying the relocation of services to the new terminal would position WA as a major domestic and international hub.
“The establishment of this hub will enhance inbound tourism, offering Australians more travel options to Asia, Africa, India, and Europe,” he said.
“The new terminal promises passengers a world-leading travel experience with seamless transfers, state-of-the-art check-in and bag drop facilities, and a multi-lounge precinct featuring bespoke dining and wellness initiatives.
“Additionally, the investment in airport infrastructure and services, including the construction of the airport’s first hotel, will enhance the overall visitor experience.
“The new hotel and improved access roadworks will cater to the needs of business travellers and tourists alike, providing convenient and comfortable accommodations right at the airport.”
