With Qantas boss Alan Joyce set to fly to WA tomorrow to make an announcement alongside airport chiefs and Premier Colin Barnett, it is understood the airline and Perth Airport are close to finalising the landmark agreement.
The development would pave the way for direct flights from Perth to London using Qantas’ revolutionary Boeing 787 planes, with the potential for extra routes to Paris, Frankfurt and Rome to follow.
Qantas is expected to take delivery of its first Boeing 787, which will be capable of flying between Perth and London in 171/2 hours, late next year.
While details are yet to be confirmed, the deal is believed to have thrashed out how the two parties will pay for the upfront cost for the upgrades needed to the domestic precinct at terminals three and four.
Last week, Perth Airport claimed Qantas was refusing to pay a cent towards the estimated $25 million to $28 million capital cost of the upgrade.
The airline is understood to have made commitments to the airport and the State Government to move to a new facility to be built on the eastern side of the international precinct at terminal one early next decade.
The breakthrough comes after days of negotiations between Qantas and Perth Airport, which had been at loggerheads over elements of the proposal.
At the heart of the dispute was who would pay for the upgrades needed to accommodate an international swing gate, as well as customs and border security services at T3 and T4.
Qantas wants the domestic terminal hub to ensure passengers have a “seamless” transition between connecting flights and do not have to be ferried between the domestic terminal and T1.
Another sticking point had been whether, or when, Qantas would move to a new central precinct expected to be built alongside T1 at a cost of about $500 million.
The development is not due to be built until at least 2021 and Qantas had threatened to walk away from Perth as a long-haul flight hub unless it could consolidate its operations at the domestic precinct in the meantime.
Earlier this month, at the height of the stand-off, Mr Barnett said the State would be prepared to help pay for extra Australian Border Force staff at the domestic terminal in a bid to get the deal over the line.
The Premier’s office did not respond to requests for comment yesterday but it is believed Mr Barnett’s commitment was also key to the breakthrough in negotiations.
Reports of the agreement are likely to be welcomed by WA’s business community, with Wesfarmers chief executive Richard Goyder describing the proposal as a “no-brainer”.
Qantas and Perth Airport did not comment.
The West Australian