Buswell pushes on third runway
By Geoffrey Thomas Aviation Editor
Exclusive, The West Australian
Updated November 5, 2012, 3:47 am
The State Government is demanding answers from Perth Airport on a range of issues including plans and the timeline for a third runway and its commitment to an integrated international and domestic terminal.
In a frank letter, Treasurer and Transport Minister Troy Buswell also questions the way commercial leases for warehouses are structured and if they will limit the airport's ability to fund critical airfield infrastructure, such as another runway.
The letter, obtained by _The West Australian _, asks for a meeting with Perth Airport Pty Ltd's chief executive Brad Geatches and its chairman David Crawford.
The company has held a 49-year lease on the Commonwealth airport land since 1997, when the airport was privatised.
Mr Buswell warned last month that if the airport did not build a third runway to handle demand "it would be an impediment to the State's development".
Mining giants also question the quoted cost of the runway of $580 million given they build suitable runways for $50 million in the Pilbara where costs are higher.
Perth Airport is experiencing extraordinary growth, with a 40 per cent lift over the past five years and the growth is accelerating.
The letter opens with Mr Buswell reminding the airport "that both the State and Federal governments are committed to investing approximately $1 billion to upgrade the road network that services the airport".
"Given this commitment and the importance of the airport to the State's continued economic growth, I am seeking assurances that the planning and investment commitment of the State Government is adequately supported by Perth Airport," he said.
Mr Buswell says he wants details of the timeline for building the third runway and its anticipated capital cost supported by detailed financial and other information used to arrive at the estimate.
He also wants answers about the "practice of structuring commercial leases for airport land with large upfront payments and relatively low ongoing annual payments and its impact on the airport's ability to fund ongoing works".
Mr Geatches responded, saying "leases with upfront payments represented 2.6 per cent of Perth Airport's total revenue over the past five years" and claims "there are no sub-leases entered into by Perth Airport that would compromise timely construction of a third runway, or its design or operation".
Mr Geatches said Perth Airport's credit rating was upgraded this year by both Moody's and Standard & Poor's.
"The company has excellent support from shareholders and lenders to continue our major investments and Perth Airport has both the capacity and preparedness to bring forward the third runway, if airlines require it," he said.
Last month Qantas said it wanted a third runway.
Mr Buswell also wants a firm timeline on the development of the new consolidated international and domestic terminal.
'Perth Airport has both the capacity and preparedness to bring forward the third runway.'"Perth Airport's *Brad Geatches *
Runway key to capacity
The West Australian
Updated November 5, 2012, 3:51 am
Air traffic control provider Air- Services Australia says only an extra runway will solve Perth Airport's growth problems.
AirServices manager corporate communications Rob Walker said though an operational efficiency program under way would help increase capacity, it was "not the silver bullet".
"Only a new third runway will give us the 50 per cent increase in capacity the airport needs," Mr Walker said.
AirServices, in conjunction with Perth Airport and airlines, has been conducting an airport capacity enhancement with the help of British air traffic control provider NATS.
The report has identified about 25 ways to improve runway capacity, with a potential improvement of up to 20 per cent over two years, though that translates into only six to seven extra movements an hour at key times.
Perth Airport believes that in the afternoon traffic pattern it will achieve a 30 per cent gain, but that will meet only current demand with no provision for growth.
The improvements include pilots exiting runways faster or taking off without delay, installing more high-speed taxiway exits and the way planes are controlled.
Under the new system, pilots must be ready to roll the moment they are given line-up clearance. They will be asked for maximum braking and thrust reverse to leave the runway as fast as possible.
Perth Airport will build high-speed taxiways that are angled off - rather than at right angles - to the runway.
Geoffrey Thomas
Skippers fears for rural routes
Geoffrey Thomas, The West Australian
Updated November 5, 2012, 3:52 am
Perth Airport has moved to assure smaller airlines they will not be penalised under a new slot system to manage congestion.
Skippers Aviation, which has nine of the 11 regulated air routes to small regional centres, fears it will be excluded from the morning peak departure period despite having some of the routes for 22 years.
Skippers chairman Stan Quinlivan says it appears to regional communities and some mid to large mining companies that any plane with fewer than 46 seats has no right to use take-off slots they have used, in some cases, for 20 years.
Mr Quinlivan said documentation showed smaller planes would be excluded from the slot system.
He suggested that if this was the case, WA should consider similar legislation to that in NSW, where protection was given at Sydney Airport to flights from rural areas.
Mr Quinlivan said congestion at the airport was setting the airline back an average of 30 minutes on departures, with delays on most days for each service.
This put additional workloads and stress on pilots and made it necessary on most days to carry an extra 15 minutes of fuel, a payload equal to one passenger.
Delays at the airport cost an estimated $24 million a year.