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- 3444m x 45m
2163m x 45m
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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 servicing Perth Airport
661 total articles
38 total articles
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.
Virgin Australia and Tigerair Australia are beginning to flex their muscles with Tigerair Australia making its first strategic move since becoming part of the Virgin Australia Group in Apr-2013 by launching direct services between Sydney and Perth as the carrier takes delivery of its 12th A320 in Dec-2013.
Virgin Australia meanwhile has taken another step to challenge Qantas’ domestic regional network domination with the launch of the first direct link between its home base of Brisbane and Cloncurry.
The changes signal the start of Virgin Australia’s ambitions to duplicate the successful Qantas/Jetstar model which seeks to separately maximise the returns from the full service and leisure markets.
Indonesia-Australia aviation has traditionally been dominated by inbound traffic to Bali. The resort island accounts for over 80% of capacity in the market and Australian visitors to Indonesia currently outnumber Indonesian visitors to Australia by a more than six to one ratio. But the market is slowly starting to diversify with more flights linking Australia with the capital Jakarta and secondary Indonesian destinations.
Australia is well positioned to benefit from Indonesia’s booming economy as its growing middle class starts to have the income and desire to holiday overseas. The geographic proximity of the two countries means several routes are within the range of narrowbody aircraft, opening up a huge range of new options for LCCs and full-service carriers from both countries.
This is the third report in a series of reports on the Asia-Australia aviation market. The first report looked at the Malaysia-Australia market and the rapid growth of AirAsia X. The second report looked at the Philippines-Australia market and bilateral limitations which are blocking the launch of services from Cebu Pacific. This report looks at the larger Indonesia-Australia market, which has seen significant growth this year and has potential for continued rapid growth over the medium to long-term.
AirAsia X will become Australia’s fourth largest foreign carrier by the end of 2013 as it allocates nearly all of its additional capacity for the remainder of the year to the Australian market. The expansion will see the medium/long-haul low-cost carrier increase its Australian operation from 35 weekly flights currently to 54 weekly frequencies in Dec-2013.
AirAsia X in the process will overtake rival Malaysia Airlines (MAS) as well as Thai Airways and Cathay Pacific in the Australia international seat capacity ranking. Only three foreign carriers – Emirates, Singapore Airlines (SIA) and Air New Zealand (ANZ) – will offer more seats in Australia in Dec-2013.
The expansion is made possible by a new air services agreement between Malaysia and Australia which increased total capacity to Australia’s four main cities by 40%. AirAsia X plans to continue to pursue expansion in Australia in 2014 and beyond, with more flights from Kuala Lumpur and new services from its planned second base at Bangkok.
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