Wesfarmers seeks WA’s help for Perth-London direct flights, but Qantas & airport managers argue over cost of expansion

There is a clamor in West Australia for Qantas to push through with its planned Perth-London direct flight using the air carrier’s new Dreamliner. However, there is turbulence between the Flying Roo and Perth Airport managers over the cost of upgrading the gateway.

By having a non-stop flight between the British capital and Perth, the Australian city would become a regional and business hub, Richard Goyder, chief executive of Wesfarmers, argues in seeking the state’s help to ensure the direct flights would be available. Executives of other large companies in Perth support Goyder’s push.

Included among those who backed Goyder are Macquarie Group WA Chairman Mark Barnaba, British Airways Chief Executive Sir Rod Eddington and Hawaiian Property Group Chief Executive Russell Gibbs. Goyder, who sees the opportunities offered by the direct service, believes the Perth-London flight could grow eventually to four daily flights from an initial one trip, News.com.au reports.

Qantas targets April 2018 as the start of the direct Perth-London service using its new long-haul Boeing 787 jets, but the air carrier is disputing the cost of the upgrade. Perth Airport managers estimate the cost of expansion at $40 million, but Qantas wants to shoulder only $25 million because it wants to use the terminals 3 and 4 of Perth’s domestic precinct so passengers would have a seamless transition between their domestic and international trips, West Australian reports.

However, Colin Beckett, chairman of Perth Airport, and Kevin Brown, chief executive, say they are open to securing the marquee service, Qantas must shoulder the cost of upgrading T3 and T4. Brown says the airport is ready to provide the funds for the upgrade, but the national carrier allegedly refuses to provide a commitment it would continue to provide the long-haul non-stop Perth-London trips.

Using T3 and T4, designed for domestic passengers, would also require deployment of customs and border security service to the domestic section of Perth Airport.