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Aussie airport spat hinders int'l routes

Europe

2019-03-27 13:15

SYDNEY, March 27 (Xinhua) -- A dispute between Australia's flag carrier Qantas and Western Australia's Perth airport is stalling the national carrier's plans for more direct international routes, Qantas Group Chief Executive Alan Joyce revealed on Wednesday.

Just one day after the airline celebrated a year of direct flights between Perth and London, Joyce told the national broadcaster that the airport is suing Qantas for millions of dollars in unpaid fees.

Joyce said that following the success of the London-Perth route they are looking to add more direct flights to their schedule including Paris and Johannesburg, but this cannot go ahead until discussions are settled.

"We're working through the economics of ordering the aircraft for (more routes), but one of the delays we have is unfortunately we have a dispute with the airport ... and that could take a number of years," Joyce said.

While 26 of the 27 airlines operating out of Perth Airport have agreed to pay the rates set out for aeronautical services, Qantas said that operational costs have changed and airport service fees should reflect that.

"The last agreement we had gone back to 2011 and since then interest rates have come down, the assets have depreciated and we do believe it is too high," Joyce said.