Qantas and Perth Airport have reached a historic commercial agreement today, paving the way for a significant boost to Australia’s tourism industry through new international and domestic flights.
Under this 12-year agreement, Perth Airport will invest approximately $3 billion in constructing new terminal facilities and a parallel runway. This substantial investment is expected to stimulate immediate and ongoing economic growth, as well as job creation.
Part of Perth Airport’s $5 billion capital investment program, this initiative marks the largest private infrastructure development in Perth. Additionally, it will include the construction of two multi-storey carparks, significant access roadworks, and the airport’s inaugural hotel.
Qantas and Jetstar will shift all operations to a new terminal in the Airport Central precinct, complemented by their substantial investment in new aircraft. This move aims to facilitate the growth necessary to establish Western Australia as a prominent domestic and international hub for the airlines.
By the time the new terminal opens in 2031, Qantas and Jetstar plan to introduce an additional 4.4 million seats annually to and from Perth.
This hub is anticipated to significantly bolster inbound tourism and provide Australian travelers with expanded options for destinations in Asia, Africa, India, and Europe.
The new terminal will offer passengers a world-class travel experience, featuring seamless domestic and international transfers, along with cutting-edge check-in and baggage drop facilities. Qantas will collaborate with Perth Airport to develop plans for a multi-lounge precinct offering bespoke dining and wellness initiatives, showcasing a signature design.
As part of the agreement, Qantas intends to construct a new engineering hangar in the Airport Central precinct.
Perth Airport will also upgrade Terminals 3 and 4, currently housing Qantas domestic and international flights, to create additional capacity while the new terminals are under construction. Jetstar will relocate its domestic services to Terminal 2 from September 2024, unlocking further growth opportunities for both airlines before transitioning to the Airport Central terminal upon completion.
These upgrades to Terminals 3 and 4 will enable Qantas to expand services and add more destinations from Perth, including Auckland and Johannesburg starting in mid-2025, subject to meeting border agency requirements. The enhancements will also include gate upgrades to accommodate ultra-long-haul aircraft, such as the Project Sunrise Airbus A350s scheduled to arrive from 2026.
Furthermore, Qantas and Perth Airport have agreed on the necessity and timing of the new parallel runway, slated to open in 2028. The completion of this runway will facilitate additional growth for the vital resources sector and ensure the future resilience of aviation in Western Australia.
