Qantas Unveils Ambitious Perth Airport Expansion Plan

6 months ago Editor

Qantas and Perth Airport have sealed a historic multi-billion-dollar deal to expand and modernize the airport, including a new terminal and runway, enhancing Perth’s role as a major international hub.

Qantas and Perth Airport (PER) have entered a landmark multi-billion-dollar agreement to expand the airport’s infrastructure, positioning Perth as Qantas’ second-largest international gateway after Sydney. This 12-year deal involves an investment of around A$3 billion ($2 billion) in new terminal facilities and a parallel runway, forming part of a broader A$5 billion program that includes car parks, transport infrastructure, and a hotel.

The agreement concludes a prolonged dispute between Qantas and the airport over fees and capital costs, which had previously escalated to the Western Australian Supreme Court. Qantas CEO Vanessa Hudson highlighted the significance of this deal, stating, “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.”

Currently, Perth Airport comprises four terminals and a General Aviation precinct. Terminals 1 and 2 are located on the east side of the runways, while Terminals 3, 4, and General Aviation are on the west, separated by a 10-minute drive. Under the new agreement, Qantas and subsidiary Jetstar will relocate all services to a new terminal at the Airport Central precinct at Terminal 1, unifying their operations into one complex. By 2031, the airlines aim to add 4.4 million seats to and from Perth annually.

In the meantime, Perth Airport will upgrade Terminals 3 and 4 to increase capacity. Jetstar will move its domestic services to Terminal 2 from September 2024. Qantas plans to utilize the upgraded Terminals 3 and 4 to introduce more services and destinations, including the resumption of nonstop flights to Auckland and Johannesburg from mid-2025.

The upgrades will also include gate modifications to facilitate Qantas’ ultra-long-haul routes under Project Sunrise. Qantas is set to receive the first of 12 Airbus A350-1000 aircraft for Project Sunrise in mid-2026. Both Qantas and Perth Airport have agreed on the timeline for the new parallel runway, expected to be operational by 2028.

“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 Western Australia flying over the next few years as we receive new aircraft and grow our fleet,” Hudson noted. With the launch of Perth-Paris in July and new Jetstar services into Asia, Perth is on track to become Qantas’ second-largest international gateway.

Perth Airport CEO Jason Waters described the infrastructure projects as “a once-in-a-lifetime investment program” set to transform the airport over the next decade. Western Australian Premier Roger Cook added that the expansion would open new routes and add millions of extra passenger seats annually.

In 2023, Perth Airport saw a record 15.3 million passengers, surpassing the previous high of 14.9 million set in 2014. Qantas, currently the largest operator at Perth Airport, holds a 36.4% seat capacity share, followed by Virgin Australia at 28.4% and Jetstar at 7%. The ongoing enhancements will bolster Perth’s status as a major international hub, enhancing connectivity and driving economic growth in Western Australia.