New deals to service WA's tourism and resource sectors

Perth Airport has been in negotiations with all airlines to secure new seven-year agreements on pricing and service levels. In an Australian first, this process has been conducted in an open and transparent manner through a publicly-accessible data room.

Alliance Airlines, which predominantly services the resources sector, was the first airline to sign up to the deal, quickly followed by Rex and Virgin. (Qantas does not operate regional services through T2.)

The process has delivered a major cut of more than 35% per cent to the published terminal charges for Perth Airport’s T2 terminal which has the largest share of flights to regional WA towns.

Published T2 charges will fall from $19.40 per passenger to $12.07. However most airlines will pay less than this.

Perth Airport CEO Kevin Brown said the airport had shown that it was open to negotiation with individual airlines based on the nature of their business and their specific needs.

“We invested $120 million in T2 to service regional flights and we’re now seeing that investment pay off for airlines, their passengers and regional communities,” Mr Brown said.

“We set up this new open and transparent process because we wanted to work with our airline customers to help them build their business in Western Australia.

 “We’ve been able to talk with airlines like Alliance, Rex and Virgin and understand their needs and reach commercial agreements to incentivise these airlines to grow their business by growing the market to regional destinations.

“This will deliver savings to the resources sector as Alliance has indicated it will look to pass the savings on. It will also benefit people living in regional WA as it will help them build on the success of the Community Fare Scheme introduced by Rex on its Albany and Esperance routes and recently expanded to Monkey Mia and Carnarvon.

“With the focus on building regional tourism and supporting regional communities, we’ve been able to partner with these airlines to deliver a great outcome for regional WA.”

Note: The published airfield charge will rise from $4.77 to $5.94. Airlines operating from the airport’s General Aviation precinct can negotiate discounts on this charge as part of a seven-year Aeronautical Service Agreement.

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