Barnett weighs in on Qantas, airport stoush
By Gareth Parker and Geoffrey Thomas - The West Australian on November 16, 2016, 6:32 am
Premier and Tourism Minister Colin Barnett says he can “live with” Qantas operating a direct flight to London out of its Perth Airport domestic terminal.
But he wants the airline to guarantee it will move to the eastern, international side of the airport within five years.
Mr Barnett said the Government’s main objective was to secure the direct service to London, which Qantas wants to offer on its new generation of Boeing Dreamliner 787 aircraft, the first of which is to be delivered next year.
Qantas wants to operate the service from under one roof in Perth at its existing terminals at T3 and T4 but it would require a $25 million upgrade because there are no Customs facilities.
It is understood Perth Airport does not support spending the money on the upgrade because it has a longer term vision of building a new terminal at its international site.
If the issue cannot be resolved, the direct service from Perth to London may be lost, with Qantas set to deploy its first crop of 787s elsewhere. “Our major objective is to see the direct service to Europe, principally London, is based out of Perth,” Mr Barnett said, adding that he understood Qantas’ dilemma.
“I am seeking an assurance from Qantas that they will within a reasonable period of time — say less than five years — move across to T1, the international terminal.
“The long-term planning for Perth Airport is about all international and domestic flights going through that terminal and that’s part of the reason we’re building an underground rail line to service that terminal.”
Mr Barnett ruled out any capital contribution from the State Government towards a terminal upgrade, saying $2 billion was already being spent on the railway line.
There could be an obstacle in that a new terminal on the international side may not be able to operate without a third runway, pushing the time frame out to eight to 10 years.
Shadow tourism minister Paul Papalia said Mr Barnett needed to get involved in discussions to ensure WA did not miss out on the new route — as it had when Qantas flagged direct flights to Tokyo, which ended up operating from Brisbane.
“As a Premier you have a fair amount of weight,” he said. “Call in the CEOs and have a chat.”
Dispute must not ground new London flight
Gareth Parker Comment:
The management of Perth Airport has worked hard to shed its well-earned punchline reputation in the past several years, with a sustained program of upgrades that has transformed the city’s gateway to the world into something that actually works pretty well.
Anyone who flies out of the new Virgin pier enjoys a seamless experience, and the growing pains of construction on the Qantas domestic and international sides have mostly been worth the wait.
So it would be a dreadful shame if a commercial dispute between Perth Airport and Qantas cost us a direct flight to London.
Yes, the estimated $25 million cost of upgrading Qantas’ terminal on the domestic side is a lot of money — especially for one flight a day and especially when the long-term vision is to shift the Flying Kangaroo from its current digs to the T1/T2 side.
But the daily service would be just the beginning and would put Perth and WA on the radar of European tourism, a huge boon in an economy that is searching for its next wave of jobs.
Qantas should not expect a financial free kick but nor can Perth Airport, a monopoly, place the short-term interests of its institutional shareholders over the broader interests of the community it serves.