We take a closer look at the development plans of Perth Airport where new facilities and passenger growth are very much on the agenda.
Perth Airport has officially unveiled its master plan for the future, which will deliver its long-awaited “one airport” vision for Western Australian travellers.
The A$5billion investment programme will bring all operations into the Airport Central precinct, with a new parallel runway, new terminals facilities, two multi-storey car parks with associated roadworks, an upgrade of Terminal 2, and the airport’s first on-site hotel.
Perth Airport CEO, Jason Waters, notes that the scale of what needs to be built is unprecedented in Perth.
“We will be completely changing the face of Perth Airport over the next decade,” he enthuses.
“We will have a world class airport experience for travellers while delivering the capacity and efficiency our airline partners need to grow their connections into Western Australia.
“We want the new terminal facilities to reflect the confidence and character of Western Australia. This will be the first welcome to our State for millions of visitors each year and we want to make a lasting first impression.
“We know that one of the things that confuses the public the most is which terminal or which part of the airport they should be heading to. Bringing everything into one precinct will create ‘one airport’ for all flights. This will make the whole experience more intuitive and simpler.
“It will also help boost regional tourism as it will make it easier for connections between international, interstate and regional flights.
“Last year we hosted a record 16 million passengers through our terminals, and we’re heading toward the 20 million passengers per year mark within the coming decade.
“There will be some pain along the way as have to build most of these projects in a live and increasingly busy airport environment, but we’ll be sequencing the construction works and placing a strong focus on minimising disruption for our passengers and our airline partners.”
Waters is confident that the new terminal facilities will cater to a diverse range of different travellers needs and expectations.
He says: “Travellers want their airport experience to be as smooth as possible, from arriving at the airport, to moving through check-in and security, to waiting for their flight to board.
“Many want to feel the buzz of the excitement of a journey about to begin. Some will be looking for a range of quality, affordable food and beverage or retail outlets. Others will be looking for more quiet, reflective areas to help lower the stress levels.
“We’ve got an amazing opportunity here to build in up-front measures to cater for passengers of all abilities and remove the barriers to travel that some people experience.
“We’ll also be ensuring both the construction and operations of the new facilities will be sustainable and environmentally responsible. This will include measures to reduce water and energy use, and to also reduce the amount of waste generated.”
He notes that a number of projects associated with the transformation of Perth Airport are already underway.
“The future is coming at us fast and we have made a great start to this once-in-a-generation build,” says Waters.
“Construction has commenced on the multi-storey car park, and works are underway at Terminal 2 to add more departure gates and seating. We will also add more car parks and make changes to the road network around T2 to improve traffic flow along the forecourt.
“We’ve partnered with with Australia’s largest hotel operator, Accor, to operate the first hotel on the airport estate under the Pullman Hotels & Resorts brand.
“Design discussions with our airline partners are also underway on the expanded international terminal and the new domestic terminal.
“And detailed design on the runway has been completed with construction works due to begin in the New Year.
“Along with the construction activity, our team together with the State government will continue to work on attracting more interstate and international routes, which will further support our important tourism, resource and export sectors.”
First airport hotel
As already mentioned, the gateway’s vision for the future includes the addition of its first on-site hotel, the Pullman Perth Airport, which will be developed in partnership with Australia’s largest hotel operator, Accor.
The new state-of-the-art hotel is slated to open in 2027 and will feature 240 rooms and suites across eight floors, a rooftop restaurant and bar, lobby lounge café, gymnasium, sauna, meeting facilities, and co-working spaces.
Dan Sweet, Perth Airport’s chief property officer, says: “We are delighted to be partnering with world-leading hospitality group, Accor, to deliver our first hotel.
“The new Pullman Perth Airport hotel will be a world-class facility located at the front door to our major terminals. It will make it even more convenient for international and interstate visitors, providing a place to stay and relax during connections.”
Qantas key to airport’s success
Earlier this year Qantas and Perth Airport reached an historic commercial agreement that proved the catalyst for the multi-billion-dollar wave of investment in the Western Australia gateway.
As part of the 12-year agreement, Perth Airport will invest around A$3 billion in new terminal facilities and a new parallel runway, which will generate immediate and ongoing economic growth and job creation.
Qantas and Jetstar will relocate all services to a new terminal in the Airport Central precinct that will, along with the airline’s major investment in new aircraft, enable the growth required to turn Western Australia into a major domestic and international hub for the airlines.
Qantas and Jetstar plan to add 4.4 million seats to and from Perth per annum by the time the new terminal opens in 2031.
The hub will significantly enhance inbound tourism and give Australians more options when travelling to Asia, Africa, India and Europe.
Ongoing upgrades to Terminal 3 and Terminal 4 will enable Qantas to add services and more destinations from Perth, including Auckland and Johannesburg from mid-2025, subject to meeting border agency requirements.
The works will also include gate upgrades to accommodate ultra-long-haul aircraft, including its Project Sunrise Airbus A350s which arrive from 2026.
Speaking about the agreement at the time, Qantas CEO, Vanessa Hudson, said: “This is the largest airport infrastructure deal in our history. It will enable us to create a world-class western hub and significantly expand our domestic and international services over the short, medium and long-term.
“Not only will it allow us to bring hundreds of thousands more travellers to and through Western Australia each year, it will also make it easier for overseas tourists to connect to more destinations across Australia.
“Perth-London and Perth-Rome are two of the most popular flights on our international network, which gives us confidence in our strategy to ramp up WA flying over the next few years as we receive new aircraft and grow our fleet.”
Traffic growth and strong profits
The airport has reported a strong profit result for FY24 as it prepares to embark on its historic A$5 billion infrastructure investment programme.
Strong growth in passenger numbers saw increased revenue across all of the airport’s operations, including aviation, ground transport, property and retail.
As a result, Perth Airport’s EBITDA rose from A$403 million in FY23 to A$420 million in FY24, while net profit after tax rose from A$110 million in FY23 to A$125 million in FY24.
Importantly the results reflect the resolution of all outstanding commercial issues with the Qantas Group.
“When Perth Airport grows and prospers, Western Australia grows and prospers,” says Waters.
Reflecting on FY24, Waters says that it proved to be a year of consolidation and growth for Perth Airport.
He says: “In FY24 our push for increased international connections paid off with new routes, the post-COVID return of a number of international airlines, and increased flight numbers on several existing routes.
“This included the Qantas Perth-Paris service, Vietjet and Vietnam Airlines flights to Ho Chi Minh City, Batik Air and Citilink services to Jakarta, and Singapore Airlines and Cathay Pacific both lifting capacity into Perth.
“We expect this to build even further in 2025 when the Routes Asia conference takes place in Perth – an event Perth Airport played a major role in securing.
“Our operations team has done a remarkable job in managing almost 157,000 aircraft movements and more than 16.1 million passengers safely and securely.
“Our property portfolio continues to record outstanding results with an occupancy rate of more than 99% while delivering the new Dunreath Village shopping centre, KFC, McDonalds and an IMO carwash.
“Retail and ground transport revenue has grown while delivering a range of new product offerings for passengers including new food and beverage outlets and increased undercover parking.
“Demand for parking continues to grow and we added two new Long Term car parks and expanded our Premium car park offer in T3/T4 to accommodate this increase.”
With a clear vision for the future and the airlines onboard with its ambitious plans, the next decade and beyond promise to be interesting and exciting ones for Western Australia’s gateway to the world.