The West, 15 Nov 16:
"Airport row risks London flights
Perth risks losing a revolutionary non-stop air service from Perth to London because of a commercial impasse between Qantas and Perth Airport over a $25 million upgrade to Qantas facilities.
Qantas will take delivery of its first Boeing 787 late next year. The long-range jet is capable of flying non-stop from Perth to London in about 17 1/2 hours.
Qantas wants to consolidate its operations at the domestic terminal on the western side of the airport’s runways at terminals three and four.
With a groundbreaking new aircraft, the airline refuses to bus passengers across the tarmac. It wants efficient connections to the rest of its national network to make the service work and to beat similar connections through Singapore or Dubai.
It is understood the airline has lobbied Transport Minister Bill Marmion.
Premier and Tourism Minster Colin Barnett, who has called the direct London service a “game changer” for the WA economy, is also being kept informed of the dispute.
There are no customs and international arrival/departure facilities at T3 and T4. Qantas believes it would cost up to $25 million to upgrade its facilities.
Senior Perth Airport management claim the cost will be closer to $45 million and are said not to be keen on the proposal because the expense cannot be justified for a daily flight of 236 passengers.
Insiders believe the Qantas cost estimate is more accurate and opposition to the spending ignores the wider benefits to the WA economy. Qantas sources believe the route could grow to a twice-daily service and expand to European capitals such as Paris, Frankfurt or Rome.
Perth Airport would prefer that Qantas consolidate its operations on the international side of the airport, but that development, and a required third runway, could take eight to 10 years.
A senior Qantas spokesman said: “The Perth to London route is the first step in creating a western hub in Perth that could link Australia to several cities in Europe, non-stop.
“The potential for tourism and jobs and economic growth from that is huge.
“We’ve had candid discussions with Perth Airport about what this needs to look like to be successful. It’s critical that we can put domestic and international operations under one roof.
“We appreciate this isn’t the airport’s first preference but we think the benefits for all involved are tremendous.”
Perth Airport chief executive Kevin Brown said the airport was “fully supportive” of the proposed non-stop flights and was working with Qantas “to understand its proposed operating model”.
“This is an exciting opportunity and Perth Airport is keen to ensure that the opportunities afforded by this proposal are realised, and that the significant investments already made or proposed to be made at Perth Airport support the long-term sustainability of the service,” he said.
Mr Barnett said it was “a commercial matter” between Qantas and Perth Airport and negotiations were ongoing. “The State Government wants Perth to become the western gateway into Australia with non-stop Qantas flights between Europe and Western Australia,” he said.
“I am aware that part of the negotiations between Qantas and Perth Airport are centred around whether the gateway service will be located at the international or domestic terminals.”