Perth Airport welcomes WA Supreme Court decision

PERTH AIRPORT WELCOMES WA SUPREME COURT DECISION

Perth Airport has welcomed a decision by the WA Supreme Court over the short-payment of invoices by the Qantas Group.

Perth Airport CEO Kevin Brown says the independent umpire has now handed down their decision.

“We look forward to resolving all outstanding payments and moving forward together with Qantas as we rebuild the WA aviation sector.”

“We are glad to have received a judgment and the outcome has recognised the fairness of the open and transparent consultative manner in which Perth Airport negotiates prices with our airline partners. 

“The judgement recognises that airports are entitled to a fair and reasonable price for the services they provide to all airlines for the benefit of the 8 million hardworking Australian workers who are effectively the shareholders of Perth Airport through their superannuation funds.

Based on the pricing included in the judgement, Perth Airport’s expectation is that Qantas will be required to pay in excess of $9 million more than it initially paid to make up for the short payments it made when using at Perth Airport from July to mid-December in 2018.

“We’ve already signalled to Qantas our willingness to work on returning the Perth London service, the new Perth Rome service, and additional routes such as Johannesburg and India,” Mr Brown said.

“Our focus remains on quickly reconnecting WA to the world. 

“In 2018 we negotiated new long term agreements with all of our airline partners, informed by the Building Block Model, which resulted in price reductions being offered.

“The fact we were able to secure new agreements with 25 of the 26 airlines operating at Perth Airport is evidence the process was fair and reasonable.

“We began that consultation process with a WACC of 9.7 per cent. Qantas had countered with a significantly lower figure, almost half of what Perth Airport proposed and short paid Perth Airport on that basis. The court has ruled that 9.6% is a fair and reasonable WACC – closely aligned with Perth Airport’s view.

“Perth Airport welcomes the decision and looks forward to working with Qantas as we rebuild the sector.”

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