Qantas, Perth Airport sign agreement for new terminal facilities
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The news: Qantas has resolved a long-running dispute with Perth Airport after the two parties agreed on a deal for a new airport terminal.
The numbers: As part of a 12-year agreement, Perth Airport will invest around $3 billion in new terminal facilities and a new parallel runway. Qantas and subsidiary Jetstar will relocate all services to the new terminal, with both airlines to add a collective 4.4 million seats to and from Perth by the time the new terminal opens in 2031.
The airline said it will recognise a small gain outside of underlying earnings for FY24 as a result.
Qantas shares fell 0.58% to $6.04 in early trading on the ASX and over the 12 months has dropped 9.1%.
The context: Qantas plans to build a new engineering hangar as part of the agreement. Perth Airport will invest in the upgrades of the existing Qantas terminals to create new capacity while the new terminal is being built. This will allow the airline to add services and destinations, and also accommodate ultra-long haul aircraft.
Qantas has been involved in an years-long dispute with Perth Airport over passenger processing charges, moving to a new terminal complex and building of a parallel runway. Last year the WA Supreme Court found in Perth Airport’s favour in the passenger processing costs but Qantas appealed that decision.
What they said: “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,” Qantas CEO Vanessa Hudson said.
The source: ASX announcement
