Qantas and Perth Airport in row over fees, terminal

Qantas has accused Perth Airport of withholding $200m in payments for a terminal handed back to the airport

An empty Perth Airport terminal. Picture: Richard Wainwright/AAP

A bitter public stoush between Qantas and Perth Airport has intensified after the airline accused the gateway of withholding $200m in payments for a terminal handed back to the airport.

The accusation was made after Perth Airport revealed it was owed $20m by Qantas in unpaid rent and passenger fees for the months of February and March.

Qantas has told airports across the country it would not pay rent on leased areas from February 1, and would defer payment of aeronautical charges until the coronavirus crisis eased.

The airline has grounded most of its fleet and stood down more than 20,000 workers, as a result of the pandemic which has obliterated demand for air travel.

Perth Airport CEO Kevin Brown said airports were hurting too as a result of massive falls in passenger numbers and non-payment of fees by airlines like Qantas and Virgin Australia.

“I feel there’s a lack of awareness from government, business and the community about how devastating coronavirus has been for airports,” Mr Brown said.

He said they had already estimated a loss of $100m for the current financial year.

“That was before Qantas without any consultation or negotiation decided it would not pay us any aviation or lease payments for February or March despite the fact Qantas had already collected airport charges from its passengers and FIFO sector,” said Mr Brown.

“Qantas’ decision wiped a further $20m from our revenue. Virgin Australia also owes Perth Airport $16m in outstanding payments but we are talking cooperatively with their administrators.”

The airport and airline have been at loggerheads for some years, with a dispute over $11m Qantas allegedly owes to Perth, currently before the Supreme Court.

Qantas International CEO Tino La Spina said the reality was the airport owed them “nearly $200m for the terminal we had to hand back to them”.

“They’ve owed us that since July last year and that’s money that we could really use right now,” Mr La Spina said.

“In fact, they’ve been collecting all of the retail revenue for the terminal and haven’t paid us that money.”

He said Qantas would pay outstanding fees soon, insisting they were “far less than the $20m they have quoted”.

But the payment was conditional on the airport making a submission to the independent arbitrator on the value of the domestic terminal.

“They should be able to do this easily,” Mr La Spina said.

A Perth Airport spokesman said an independent valuer had been appointed to help resolve the issue over the terminal.

“Qantas is fully aware of the situation as they have agreed to the process which they are now seeking to undermine by linking it to settling the debts and inappropriately commenting publicly on the issue,” he said.

“To balance the record, we believe the terminal value is closer to $50m.”

He said just ten days ago Qantas was quoted as saying the terminal was worth $150m.

“With public scrutiny of their refusal to pay any aviation or lease charges, Qantas has now claimed it’s worth closer to $200m,” the spokesman said.

“Even by Qantas’s own standards, that’s extraordinary corporate spin.”

Qantas was quick to jump to Virgin Australia’s defence when Perth Airport seized four of its rival’s aircraft last month, following the appointment of administrators, saying it was “no way to treat a customer of 20-years”.

Mr Brown said the planes were no longer physically blocked after receiving a written assurance from administrators Deloitte.

Although regular commercial passenger flights have been reduced to just a few a day at Perth Airport, the gateway still sees a significant number of FIFO services operated by Qantas and Virgin, and charter operators.