Perth Airport and Qantas settle their differences in airport fee row

Friday, 17 May, 2020 0

Perth Airport and Qantas have seemingly settled their differences after the airport had threatened to kick the airline out.

Last week the airport gave Qantas an ultimatum – pay up or we’ll ‘evict’ you.

The airport claimed Qantas owed $20 million in fees and rent, a figure the airline disputed.

After a week of negotiations a deal has been agreed.

Details haven’t been disclosed but a compromise has been reached.

"The agreement provides greater certainty for Perth Airport on the payment of aviation and lease charges while Qantas has secured a partial abatement of payments to the airport in light of the particular challenges facing its operations," a statement said.

They claim it is ‘mutually beneficial’ to both parties.

As a result the lease termination and breach notices the airport issued have been rescinded.

The agreement covers future fees as well.

There is still the matter of an ongoing legal case which Perth Airport brought claiming it is still owed money from unpaid fees from 2018.

There is also a bitter dispute over the ‘fair market value’ of Terminal 4 which Qantas built and operated.

The airport has taken ownership of the terminal and is due to pay Qantas for it, but the two parties have widely differing opinions on its value.

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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.

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