Perth International Airport is still seeking urgent talks with the Qantas Group as its continued non-payment of aviation and property rent and lease fees threatens critical fly-in, fly-out (FIFO) flights in Western Australia. The group operates around 350 flights a week through the airport and has flown more than 10,000 flights into and out of Perth since February 1, 2020, for which the airport has received no payment.
The airport's Chief Executive Officer Kevin Brown stated on May 8 alleging that the airline group, which includes serving carriers Qantas, QantasLink, and Jetstar Airways, has "unilaterally given itself a 100% rent waiver, with no negotiation, on all 39 leases at Perth Airport in breach of their contractual obligations." On that basis, Australia's fourth-busiest airport "has had no option but to serve breach and termination notices."
In response, Qantas Chairman Richard Goyder said to the Sydney Morning Herald: "Qantas has struck deals with most airports around Australia, and is in productive negotiations with the rest, following the terrible impact of the coronavirus on airlines. Perth Airport is the exception and has responded to Qantas' request for rental abatements by issuing a series of eviction notices that would shut us down in WA. They should remove these eviction notices immediately and join us in independent arbitration so we can sort this out." The chairman went on to say that unless the "eviction" notices were withdrawn, the group's airlines would be forced to stop flights from Perth within two weeks.
The airport said that the airline group was demanding a full range of terminal and airfield services "so that it can generate cash flow and profit from these FIFO flights." It understands that Qantas is "profiting from these flights, accepting money from passengers and FIFO companies for the airport's charges, but is refusing to pass this money on." The airport indicates that the unpaid fees are critical to the airfield's ability to provide service to FIFO flights, freight services and repatriation flights.
While Perth's Brown said "this situation is neither fair nor sustainable" and that "paying nothing while using all of the airport's services is no longer an option," he added that his "commercial team is ready to work quickly to resolve the issue."
Integral to the disagreement between the two companies is the airport's Terminal 4, which it took back from the carrier last year. Qantas has previously stated it would not pay the owed fees until it receives payment for the terminal - in the order of AUD200 million Australian dollars (USD129 million). However, the airport's management has put the figure at closer to AUD50 million dollars (USD32.4 million). The airport's CEO declared the argument was moot because a valuation process, which both businesses had agreed to, was still ongoing and therefore no sum was officially owed.
According to the ch-aviation capacities for the week commencing August 17, Qantas is the biggest provider of seats at the airport, with 40.6% of weekly capacity, ahead of Virgin Australia (25%), Singapore Airlines (6.6%) and fellow group airline Jetstar (4.9%).
