- CAPA Analysis
- Schedule Analysis
- Cargo Analysis
- Route Maps
- Print Summary
- IATA Code
- ICAO Code
- Corporate Address
- Level 2,
2 George Wiencke Drive,
- Domestic | International
- Airport Type
- Other airports serving Perth
- Perth Jandakot Airport
- 3444m x 45m
2163m x 45m
- Airlines currently operating to this airport with scheduled services
- Air Mauritius
Air New Zealand
Australian Air Express
China Southern Airlines
South African Airways
- Airlines currently operating to this airport via codeshare
- Aegean Airlines
China Eastern Airlines
Delta Air Lines
KLM Royal Dutch Airlines
Virgin Atlantic Airways
Perth Airport is the main gateway to the Perth metropolitan area and the state of Western Australia. Hosting domestic, regional and international passenger and cargo services for over 20 airlines, the airport is a regional hub for Qantas Airways, Virgin Australia Regional Airlines, Skippers Aviation, Alliance Airlines, Cobham and Network Aviation.
Location of Perth Airport, Australia
Ground Handlers and Cargo Handlers servicing Perth Airport
742 total articles
41 total articles
When Qantas Group informed the market that it would not add domestic capacity in the first quarter of FY2015 commencing 01-Jul-2014, the perceived implication was that the capacity and fare war Qantas had fought with Virgin Australia was over. Virgin's "Game Change Programme" re-positioned the carrier as a full-service airline with business class offering, bringing premium competition to the Australian market for the first time since Ansett's 2001 collapse. Virgin was bullish on growth opportunities while Qantas abided by its strategy calling for 65% marketshare. In borad terms, when Virgin added a flight, Qantas added two.
But the white flag has not been raised. Qantas Group's 1QFY2015 domestic capacity will be flat, but this is comprised of capacity decreases in the Western Australia market (a 10% reduction in intra-WA) and capacity increases in the east coast, mainly around Queensland. The WA market already was so over-capacity that there were never going to be winners. Pulling back capacity is not so much a strategic decision as delayed common sense. More reductions may still be needed. The Qantas-Virgin fight appears set to continue in the country's east.
The over-capacity Australia-Southeast Asia market is showing signs of improvement with airlines beginning to reduce capacity. Qantas and Singapore Airlines have down-gauged services, Qantas from 747-400 to A330-300 while Singapore Airlines has replaced a daily A380 flight at each of Melbourne and Sydney with a smaller aircraft.
Qantas has exited the Perth-Singapore market while Scoot continues to offer reduced frequencies on its Australian services. Garuda has abandoned plans to deploy 777-300ERs to Australia.
But these initiatives so far are largely the low-hanging fruit of cutbacks. Qantas still faces a reckoning of a Singapore-Australia market only slightly larger than Emirates’ Singapore/Malaysia-Australia market. Capacity has yet to come out of Malaysia, where AirAsia X has aggressively built a presence, while Malaysia Airlines tenuously holds its ground in its largest international market, despite a higher cost base and mounting losses.
Australia is the world's seventh-largest domestic market and arguably has been one of the plushest with the most handsome yields. Recently large additions of capacity from Qantas and Virgin Australia have shredded profitability by hundreds of millions of dollars. There is much debate about the Qantas Group's 65% market share "line in the sand" that sees them add capacity to match Virgin. Overlooked in this debate is where the capacity is being added and why it is so difficult to absorb it.
This report looks at the growth in the domestic market over the past two years, when this battle has been at its most intense. The fastest growing market has been the segment within Western Australia, with nearly 40% growth. This capacity is tied to mining work, which has recently softened. This market typically has very limited (if any) leisure focus, so it is difficult to stimulate demand with reduced fares and profits. There has also been rapid capacity expansion on east-west coast routes, markets which are also challenging to stimulate.
The issue for Qantas and Virgin now is not only to address the capacity situation at large, but also their strategy for Western Australia, where one-third of all Australian airline capacity goes to or from.
Garuda’s Citilink to expand into international market, starting with Malaysia, Singapore & Australia
Garuda Indonesia budget subsidiary Citilink is planning more rapid domestic expansion in 2014 and the launch of international services, with an initial six routes. The expansion comes despite challenging market conditions in Indonesia and continued losses, including a net loss of USD48 million for 2013.
But Citilink is striving to reduce its costs and improve its profitability by increasing utilisation levels and average stage lengths. Longer domestic routes and the launch of international services will drive up utilisation rates on its fleet of A320s, which is expanding from 24 to 32 aircraft in 2014. International services will also provide an important new foreign currency revenue stream, cushioning the impact from the rapid depreciation of the Indonesian rupiah.
Citilink aims to launch services to four international destinations in 2014. The carrier has selected Johor Bahru in Malaysia as its first destination overseas, followed by Kuala Lumpur, Singapore and eventually Perth.
A rapid 17% increase of capacity in the Southeast Asia-Australia market has created over-capacity, pressuring down fares. This poses a unique challenge to market leaders Qantas and Singapore Airlines, which must contend with their mainline operation and their low-cost subsidiaries, Jetstar and Scoot.
Full-service carriers with lower fares narrow the gap with LCCs, eroding the value of differentiating factors in such dual-brand strategies. Lower full-service fares can also force down LCC fares. Load factors are weakening at SIA and Qantas especially, while Scoot is carrying fewer Australian passengers than in its first year and has reduced its schedules. Qantas’ re-timing of Asian flights sees it overlap more with Jetstar, which has also reduced flights.
There is almost always an element of overlap in dual-brand strategies, but more recently at SIA-Scoot and Qantas-Jetstar it seems gains at one brand are coming at the sharp expense of the other. Adjustment is needed. Qantas, facing an unprofitable domestic market, is most pressured to make changes.
Scoot has unveiled plans to launch service to Perth, which will become the Singapore Airlines long-haul low-cost subsidiary’s 12th and final destination to be served as part of its initial six-aircraft 777-200 operation. Scoot has quickly expanded since launching in Jun-2012 but after placing into service its sixth 777 in Nov-2013 will take a one-year hiatus from expanding until its first of 20 787s arrive in late 2014.
In an unusual but logical move, Scoot has decided to lease its sixth 777 from SIA and keep the aircraft in SIA configuration. This enables the carrier to save on retrofit costs but will lead to higher per seat costs until the aircraft is replaced with a 787-8 in 2015.
Scoot has emerged as an important tool to expand SIA’s already leading presence in the key markets of Australia and Greater China. Perth will be Scoot’s third Australian destination while its other previously announced new upcoming destination, Hong Kong, will be Scoot’s sixth destination in Greater China. The carrier also serves Bangkok, Seoul and Tokyo.