Gateway to WA

“We think it was certainly valid,” Westralia Airports Corporation (WAC) CEO Brad Geatches told Australian Aviation in June. But he also says that the problem was not so much with the airport and a lack of investment, but rather the unprecedented growth the airport has gone through over the last few years.

“It caught us by surprise,” he said, and pointed to figures which show that since the 2001/2002 financial year, passenger numbers through the airport have increased by 108 per cent. Most indications are that the strong growth will be sustained for some time.

The driver of this growth has been the mining boom in the resource rich northwest, which has relied upon Perth Airport as a key piece of infrastructure for quickly moving staff and goods to these remote mine sites.

This includes moving a number of staff who work on a fly-in/fly-out (FIFO) basis, with the majority of these flights operated by Fokker 50, Metroliner, Dash 8 and EMB-120 turboprops, as well as jets. These charter and GA flights now account for more than 40 per cent of movements at the airport.

“Those operations are very airfield intensive,” says Geatches. In particular, the amount of parking space and taxiways to the runways from the GA apron, where operators such as Skippers Aviation, Network Aviation and National Jet Systems are based, have caused a headache for both the operators and the airport.

As well as these intrastate flights, strong demand for interstate travel has seen the major airlines add more capacity in recent years. Qantas now operates all services from Perth to Melbourne and Sydney exclusively with widebody aircraft. Virgin Blue, Jetstar and more recently Tiger Airways have also added flights to Perth.

Skywest, which operates its fleet of Fokker 100s and 50s on regional scheduled and charter services, has also increased the size of its operations, which depart and arrive from the common user Terminal 3.

The increased services and higher number of passengers has led to chaos in the domestic terminals at peak times, which are around the midnight hour for interstate flights and 0530-0730 for regional flights. It has not become unusual to see queues snaking outside terminal buildings, as well as crowded departure and baggage claim halls.

Airside, there have been problems securing parking bays, especially around midnight.

At that time there are often 35 aircraft requiring a parking bay around the domestic terminals, which has caused some shortages of space – particularly if aircraft have mechanical problems.

The international terminal, which is on the other side of the airport, has also seen its fair share of growth recently, particularly as

Airside there have also been problems securing parking bays, especially around midnight.

carriers including Emirates and Tiger Airways have added services over the last few years, while AirAsia X will make Perth its second Australian destination from November.

Unlike the domestic terminals, the international terminal has not experienced the same problems, but does require additional investment to improve the building which is now 21 years old.

But the frustrations felt by Perth travellers over the last couple of years, including those of Premier Carpenter, have this year forced WAC to defend itself against claims that it was “sweating the assets” (deliberately holding back on upgrades) in order to boost the company’s profits.

Geatches says that this is not the case, and that WAC has been working on solutions to these problems for some time, although it has been forced to bring forward the timetable of some of its planning. “It was accelerated about 18 months ago. Airport planning is continual, but we accelerated the planning in view of the growth that occurred. ” So in early May, WAC lifted the lid on a $1 billion, three-stage terminal precinct plan which would set up the buildings and infrastructure necessary for the next 30 to 40 years. The plan would deliver a new regional terminal within two years, as well as consolidate the domestic and international terminals at the existing international precinct within the next five to seven years.

Also included in the plan was a commitment to make upgrades to the existing domestic terminal precinct to make it more user-friendly in the short term, prior to the move to a new consolidated terminal in 2015.

Terminal WA

Given the growth in regional flying, and its continued importance to the mining industry which has driven the state’s economic growth, a key part of the plan involves building a dedicated regional terminal, called Terminal WA.

As a sign of the importance of mining to regional flying, WAC has actively engaged the mining companies in the design of Terminal WA. “They recognise that the airport is an important part of infrastructure supporting their operations,” Geatches said.

When it opens in 2010, Terminal WA will become home to a number of regional airlines and charter operators who provide FIFO charters for the major mining companies.

These could include companies such as Skywest, Alliance Airlines, Skippers Aviation, Maroomba Airlines and National Jet Systems, although at the time of writing no airline has made a formal commitment to Terminal WA.

The Terminal WA building will be bigger than the existing Terminal 3 which is used by some of these operators. The building itself will be a tall single storey, steel-framed and internally clad building with a mezzanine over inactive areas.

That mezzanine will include offices for the airlines and passenger lounges, which Geatches explains were asked for by the mining com-

Unlike the domestic terminals, the international terminal has not experienced the same problems, but does require additional investment to improve the building which is now 21 years old.

panies. “This fly-in/fly-out business is saying that employees are a scarce commodity and on the morning that they’re flying out, they’re starting early and then going straight to work, so they want to come to the airport, relax and have a hot breakfast before they board. ” The terminal will have parking for up to 35 turboprops and will also handle jets up to Boeing 737/Airbus A320 size.

The building will initially not have aerobridges, but Geatches says that there will be provision to add these to the gates directly in front of the building in the future. Instead, covered walkways will be built to the parking bays, giving appropriate shelter for passengers during inclement weather.

Since releasing the first concept drawings of Terminal WA in May, the response has been positive. “We got some quite pleasing feedback,” said Geatches.

“There’s enough support out there for this to get up. It is cost effective and by definition, interesting to the airlines. ” When it opens, Terminal WA should offer some major benefits for all the other airlines at the existing domestic terminal. “It’s the path through which all of the domestic airlines get the opportunity to grow,” said Geatches.

“Those that end up staying at the domestic precinct for a period of time will get space to grow, and those that commit to Terminal WA will obviously get space to grow.

“The other advantage is they get the opportunity to hold the pen and help design it,” said Geatches.

But he makes it clear that WAC will not force any of the airlines to move to Terminal WA, particularly if it is going to result in forcing an airline to split its regional and interstate flying operations.

“That would be unreasonable,” he said.

As the terminal will be able to accommodate 737s and A320s, there is also the possibility that the simplified Terminal WA could be used as a de facto low cost terminal for Jetstar and Tiger Airways to grow their services, although the airport has not yet committed to this.

The final design for Terminal WA is expected to be completed later this year after the commercial negotiations with the airlines are completed. The terminal will still be subject to approval by the federal government through a Major Development Plan which Geatches expects to be relatively straightforward.

Some work has already begun, with the tarmac for the parking bays being laid at the site. At the current timetable, building work will commence early next year for an opening in early 2010.

Terminal Consolidation

While Terminal WA will provide a new home for intrastate services, the most anticipated part of the announcement in May was the confirmation of a plan to bring forward the consolidation of the domestic and international terminals around the existing international precinct, which will occur in seven years.

A key driver for this was the space constraints at the current domestic precinct, explains Geatches. “If we build out the domestic precinct, we start to hit capacity and constrain growth, based on a mid-range forecast, in 2017. What that means is that you invest hundreds of millions of dollars in assets that have a 30-40 year life and you end up having to walk away from that before its time. ” The airport also considered that it would soon need to invest to improving the current international terminal.

“We know there are deficiencies in the current international terminal and we know there is more that needs to be done on it,” said Geatches. “It’s a good experience at check-in, but as you move through the building it deteriorates. ” The problems are that the building currently has too many levels, with passengers required to go up after immigration clearance and then down to board via the aerobridges. Space around the departures hall and baggage reclaim is also narrow and spaces out quickly when more than one widebody comes in.

Geatches says that with the extra passenger numbers and current constraints to growth at the domestic precincts, it was most sensible to bring forward the consolidation of the terminals, which has been the long term vision.

“The airport master plan has always envisioned consolidation,” he said.

“The current master plan (which was submitted in 2004) predates the unprecedented growth that we’ve had, and that envisaged consolidation some time after 2024. ” “In many respects, what we’re doing is consistent with the existing master plan. What’s happening is that the timeframe has changed. ” That timeframe would see the consolidated terminal fully open and functioning by 2015, but Geatches says that there is room to either bring it forward or push it back if required. “The timing is going to be influenced by the market, and the current timetable is based on a mid-range forecast,” he said.

This is an important consideration given the current high cost of fuel has seen other airports take a hit as some of the airlines have cut back services. But all indications are that due to the strength of demand and yields on routes to and from Perth, airlines are unlikely to cut services in the short to medium term.

Detailed plans for the consolidated terminal have not been released at the time of writing, as the airport was still examining the best way to combine the domestic and international terminals.

“We’re working through now in our next phase of planning which is developing a more detailed precinct plan and answering questions such as: are we developing three separate terminals; are we developing one terminal with a common departure hall; or are we developing a hybrid such as Melbourne with two terminals under the one roofline?” As of late June, Geatches said that the preferred thinking was to build a new international terminal immediately adjacent to the existing one, and refurbish and reconfigure the current building for use as the domestic terminal.

“What we will expect to happen as we move forward with this design is that the international and domestic processes will probably use some common infrastructure, for instance a common check-in line, a common security screening area,” said Geatches.

WAC plans to build the terminal to benefit from new technology to make passenger and baggage processing easier and more efficient. It will also have up to 40 bays available, including some which will be able to take the Airbus A380.

With a variety of different airlines using Perth, ranging from Tiger Airways and AirAsia X to Emirates, Qantas and Singapore Airlines, WAC expects that the new terminal will be able to cater to the variety of different needs from these airlines while still providing a practical level of comfort.

However, Geatches says that the focus will be on providing a functional terminal which is able to comfortably meet the needs of its passengers and will not seek to create a bold architectural statement.

“What we need is a really good level of customer service that is cost effective,” he said. “We don’t see a need for marble, glass and waterfalls. ” Nor does he give credence to calls to bring back a lake for black swans, which the airport had in the 1960s.

Under its current plans, the redevelopment of the international precinct will also involve building two hotels, which will help ease a chronic shortage of accommodation in the Perth area, and also a number of convenience stores along Horrie-Miller Drive.

These developments will also complement the growing commercial and light industrial buildings which have and are being developed on non-aeronautical land at the airport.

Unlike the current terminal, WAC plans that the new terminal will place a high focus on connectivity with Perth’s public transport and road systems.

“What we’re anticipating is that there will be connections between our transport infrastructure and the broader public transport infrastructure, with the principle being that not all of it’s going to happen in proximity to the terminals,” said Geatches.

Rather, the new terminal precinct will feature a ground transport interchange which will combine public transport links, car parks and taxi stands with a mass transit system to connect passengers and visitors to the terminal building. This interchange could feature check-in kiosks, effectively allowing some passengers to proceed straight to the security screening point. WAC has also put provision in its plans for a possible rail link to the suburban rail network. Geatches says that talks on this with the state government are ongoing, and would likely be delivered over the longer term.

Domestic Improvements

With the new domestic terminal not due for another seven years, WAC will still make improvements to the domestic precinct.

“We know that investments we now make in this precinct need to make sense on a seven year horizon,” said Geatches. “We recognise that it is necessary to make investments in this precinct because the customer experience needs to be fixed now, and we’re making those investments. ” One of these was the connection of Qantas’s Terminal 2 with the common user Terminal 3, which has helped increase space in the departures halls of both terminals.

Other improvements will also be completed by next year. “We’ve got some capital investment plans for Terminal 3 – more check-in counters, an expansion of the domestic departures hall, an additional baggage belt – but they’re relatively modest investments,” said Geatches.

Qantas has also recently invested $50 million on its own terminal, which has increased its capacity, and also built a bigger security screening area, enlarged Qantas Club and more baggage belts.

“Qantas has been very successful in the market, and they recognised that they need to invest in their terminal, and they’re onto that,” said Geatches.

A new public road which will provide an airside direct link from the domestic to the international precinct is also being built. At a cost of $18 million, this road link should cut down the journey time between the two precincts to a maximum of 15 minutes when it opens in 2009.

The airport is also redesigning the traffic flows in front of the terminal building, and will see three separate lanes which will provide for taxis, busses and small charter vehicles and public pickup/set-down. This is aimed to make the flow of traffic in front of the terminals easier than the chaos which currently reigns at peak periods.

The airport is also building three long term carparks in the domestic precinct which will be connected by shuttle busses by next year. The air-conditioned bus stops at these carparks will also feature check-in kiosks, flight information displays and real time, GPS driven information on when the next bus will arrive.

Although WAC expects that the major users of Terminal 2 and 3 will move to the consolidated terminal by 2015, the areas backing onto the apron will continue to be for aeronautical use.

“Experience suggests that terminal buildings have more than one use,” said Geatches. For instance, some regional operations may switch back to those terminals. We see them as continuing to be important aviation assets. ”

A grand plan

The $1 billion commitment to the project is the largest investment ever made at Perth Airport in its 40 year history, and the decisions being made by the airport will have a major effect on what is essentially the gateway for WA.

“What we decide now sets it up for the next 30 years, and therefore we have to take a long term view here,” said Geatches.

To that end, WAC has been consulting with airlines, the federal and state governments, local pressure groups and a number of other stakeholders to ensure that the planning and approvals process goes relatively smoothly.

So far, the public response has been very positive, although some have cast doubt on the ability to deliver a worldclass terminal while only investing $1 billion. They point to other terminals projects in Asia which have cost billions of dollars, and the high cost of construction in WA’s short-skilled economy.

But Geatches dismisses this criticism, saying, “I have a high level of confidence in our cost estimates. We are quite experienced builders and we have good relationships with the builders. In our projections, we’ve built in what we think are pretty aggressive escalations and contingencies. ” He also points out that most of the terminals which are being compared were designed more as “architectural statements”, whereas WAC intends to build terminals which are simple and cost-effective.

“We think the Terminal WA solution and the staging that we’re proposing is the lowest cost solution,” he says.

Overall, while there are still some problems at the domestic terminals, the airport is working to alleviate these and has committed to building new facilities which will provide for a better passenger experience into the future. o