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Qantas and Perth Airport have reached a landmark $5 billion agreement, ending a long-standing dispute over terminals, runways, and passenger processing costs. This transformative deal will see Qantas relocate to the eastern side of Perth Airport, significantly enhancing its T3 terminal to accommodate more international flights and constructing a new parallel runway.
Announced by Qantas CEO Vanessa Hudson and Perth Airport CEO Jason Waters, this 12-year agreement marks a pivotal moment in Western Australian aviation history. The comprehensive plan includes multi-story car parks and the development of new hotels, reshaping Perth Airport’s infrastructure.
Under the new arrangement, Qantas will move its operations to a newly constructed terminal complex adjoining the existing T1 terminal by 2031. In the interim, Jetstar will transfer its domestic operations to T2 later this year while maintaining international flights at T1. This strategic move aims to streamline Qantas' international and domestic operations, ensuring more efficient passenger processing and improved connectivity.
The agreement also includes the construction of a new runway on the eastern side of the airport, slated for completion by late 2028. This new runway will alleviate current capacity constraints, support the burgeoning resources sector, and facilitate future growth in aviation. Additionally, the runway’s design will enable quieter flight paths, minimizing environmental impact and enhancing the travel experience for passengers.
Qantas CEO Vanessa Hudson emphasized the deal's significance, 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. The additional flying will see us create an estimated 700 new jobs in Western Australia across pilots, crew, engineering, and airport staff.”
Perth Airport CEO Jason Waters highlighted the transformative nature of the agreement, noting, “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. Western Australians will now see the largest-ever private investment in an infrastructure development in Perth, changing the face of Perth Airport over the next decade.”
The Premier of Western Australia, Roger Cook, praised the commitment, saying, “This commitment cements our place as the Western Gateway to Australia. By opening up new flight routes and adding millions of extra passenger seats each year, we’re positioning WA as a major tourist destination in the region.”
This historic agreement resolves all outstanding commercial disputes between Perth Airport and Qantas, paving the way for a seamless, world-class travel experience for all passengers and bolstering Western Australia’s position as a key aviation hub. The comprehensive investment will not only enhance infrastructure but also create thousands of construction and ongoing jobs, driving economic growth and expanding tourism and trade opportunities in the region.
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