Qantas, Perth Airport make peace in $2 billion expansion deal

Qantas Airways Ltd. reached a multibillion-dollar agreement with Perth Airport for a new terminal and runway, a peacemaking pact that paves the way for a new long-haul aviation hub in Western Australia.

Under the 12-year deal, Perth Airport will invest around A$3 billion ($2 billion) in the new infrastructure. In return, Qantas and its low-cost carrier Jetstar will relocate to the new terminal and add 4.4 million seats each year to and from the city by the time the site opens in 2031, the airline said Friday. 

The two parties have long been at commercial loggerheads, including a years-long court battle over fees and capital costs under Qantas’ former Chief Executive Officer, Alan Joyce. Friday’s agreement, under new CEO Vanessa Hudson, draws a line under the dispute and will see Qantas add more services from Perth including flights to Auckland and Johannesburg from next year.

In the statement, Western Australian Premier Roger Cook said the agreement resolves all outstanding disputes between Perth Airport and Qantas. The airline plans to start a new Perth-Paris service in July.