What options were considered - Perth Airport

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What options were considered - Perth Airport
What
options were
considered
As part of the initial planning for the new runway,
several options were identified and assessed
before determining that the new runway is the
most appropriate development to meet the future
demand for air services for Perth.

           Planning
           Location for the new runway identified
           in the 1970s by a joint Commonwealth
           and State Government Committee

           Support growth
           Providing essential transport infrastructure
           capacity and supporting WA’s economic
           development

           Connecting people and places
           Furthering Western Australia’s social and
           cultural development and connecting WA
           to the world
What options were considered - Perth Airport
The new runway represents
                                                                              the best option to support the
                                                                              international competitiveness
                                                                              of the State’s critical export
                                                                              industries, including resources,
                                                                              tourism, international study
                                                                              and agriculture.

When do we need a                                                             How is the new
new runway?                                                                   runway funded?
                                                                              Perth Airport is located on approximately
The need for an additional runway at Perth Airport was
                                                                              2,105 hectares of land owned by the
first recommended more than 40 years ago by a joint                           Commonwealth of Australia.
Commonwealth and State Government Committee                                   In 1997, the airport was privatised
                                                                              under a long term lease with oversight
investigating Perth’s planning requirements.
                                                                              remaining with the Commonwealth of
Recent modelling shows that an additional runway is needed to meet            Australia. Perth Airport is operated by
the demand of intrastate, interstate and international services to and        Perth Airport Pty Ltd, which is a wholly
from Perth. The need for the new runway is driven by the demand for           owned subsidiary of Perth Airport
arrivals and departures in a given hour.                                      Development Group Pty Ltd (PADG).

Perth Airport experiences significant peak periods at particular times        More than 50 per cent of PADG is
during the day.                                                               owned by superannuation funds,
                                                                              including AustralianSuper and Sunsuper.
During the morning peak period, approximately 80 per cent of aircraft are
departing and only 20 per cent are arriving. In the early morning, there      Perth Airport funds infrastructure
is a departure peak that sees up to 40 aircraft departing each hour for a     development through a mix of equity and
two to three hour period. In the afternoon, there is an arrivals peak which   debt from banks and capital markets.
sees up to 26 aircraft arriving each hour for a two to three hour period.
Current demand exceeds the capacity in these peak periods.
                                                                              No Commonwealth or State
Simulation modelling shows that an additional runway is needed when the       funding is required for the
number of flights exceeds 145,000 per year. In 2013, flight numbers peaked    construction of the new runway
at 151,000 resulting in significant delays to airlines and passengers.

The number of annual flights is forecast to grow, reaching 172,000 by 2025
and 241,000 by 2045.
What options were considered - Perth Airport
1985                                       $1.72b                                     41.8             MILLION
Location of the new runway                 Lost tourism expenditure                   Passengers that would not travel
released as part of the                    over 20 years if the new                   to or from Perth Airport over 20
Perth Airport Master Plan 1985             runway is not built                        years if the new runway is not built

What alternative options were considered?
As part of the initial planning for the new runway, several options were identified and assessed before
determining that the new runway is the most appropriate development to meet the future demand for
air services for Perth.

Maximising existing                        A second metropolitan airport              October 2015 with the final approval
infrastructure by changing                 A second metropolitan airport has          granted in December 2016. Construction
                                                                                      is scheduled to commence early 2018
operations                                 been considered since the late 1970s.
                                           In 2015, the State Government released     with operations starting in 2026. It is
Perth Airport, in collaboration with
                                           the State Aviation Strategy noting         expected to cost in excess of $2.4 billion.
Airservices Australia, continually
looks at opportunities to improve the      that preliminary work was being            Combined with the cost of building the
efficiency and capacity of the existing    undertaken by the relevant government      second airport and given a lead time for
runways by improving or changing           departments to identify a suitable site.   approvals and construction, it is unlikely
operational processes and procedures.      However, the State Government has          that an airport would be constructed
Any changes must be considered             not identified a location or provided      in time to meet the immediate growth
and balanced against any impacts           any commitment or funding toward           needs or forecast demand for air
to the environment, surrounding            the project.                               services and therefore is not considered
communities and safety.                                                               a viable alternative to the new runway.

Between 2008 and 2013, Perth               When considering a secondary
                                                                                      Increase use of other airports
Airport undertook significant airfield     metropolitan airport, the
                                                                                      Alternative airports were considered,
infrastructure projects. $250 million      significant cost, impact to
                                                                                      including Jandakot Airport, Cunderdin
was invested in new taxiways, taxiway      newly affected areas and the
                                                                                      Airport, Busselton - Margaret River
widening, enhanced lighting and approach   timeframe to plan, approve and             Regional Airport and other regional
equipment, as well as runway overlays.     construct a new airport must               airfields. These airports were not viable
In 2012, Airservices and Perth Airport     be examined.                               options for various reasons including
engaged NATS, the UK’s largest air-                                                   not having the runway or terminal
navigation service provider, to study      In the case of Western Sydney Airport,     infrastructure to support the large
Perth Airport operations. Through          policy makers first considered the         passenger aircraft types that use Perth
implementing recommendations from          need for a second airport in Sydney in     Airport and, in some cases, the airports
the study, capacity has improved.          the 1940’s. It wasn’t until 1986, some     are not conveniently located near large
However, Perth Airport has largely         40 years later, that land began to be      population centres.
exhausted efficiencies associated with     purchased at the Bagerys Creek site.
the existing infrastructure and there is   An environmental impact statement
a need for additional runway capacity.     was released for public comment in
What options were considered - Perth Airport
$2.5b
INVESTMENT
The new runway forms part of
a privately funded investment
program over the next decade

                                                                                             New runway timeline
                                                                                         1970s planning      PLAN
                                                                                            commenced
Use of RAAF Base Pearce                    Expand existing runway                                LOCATE      1984 location for
RAAF Base Pearce is approximately          infrastructure                                                    parallel runway
30 kilometres north of Perth Airport                                                                         at Perth Airport
                                           The proposed extension of the
and has been considered previously as                                                                        identified
                                           cross runway (06/24) from
an alternative civilian airport, however                                                    2008 – 2012      GROWTH
                                           2,163 metres to 3,000 metres
it was deemed as unacceptable due                                                          dramatic and
                                           would enable the runway to
to operational constraints imposed by                                                 unforecast growth
                                           accommodate all aircraft types,
the topography of the nearby Darling                                                             INVEST      2010 – 2014
                                           including the Airbus A380. It would
Scarp.                                                                                                       $250m airfield
                                           allow for an increase in arrivals
The Commonwealth Department                and departures from the north/                                    investment
of Defence has also publicly stated        east, however, there would be very                                program to
that RAAF Pearce is not a suitable         little increase in capacity when                                  improve capacity
alternative civilian airport because       arriving or departing from the
                                                                                                             at Perth Airport
it is one of their busiest and most        south/west. The overall increase in                2014 Master    MASTER PLAN
complex airfields and it operates          capacity would only be sufficient               Plan approved     2014
using very specialised air traffic         to accommodate around 193,000               including how the
procedures to allow for the large          annual aircraft movements, after           new runway would
quantity and type of air traffic.          which, a new runway would again                  likely operate
                                           be needed.                                          and timing
Relocation of Perth Airport                                                                      DESIGN      2013 – 2017
                                           Increasing the length of the main
Given the billions of dollars in                                                                             technical studies
                                           runway (03L/21R) from 3,444                                       and design work
investment of both public and
                                           metres to 3,800 metres would
private funds that have gone into                                                            2018 public     COMMENT
                                           not provide an increase in arrival
the development of Perth Airport,                                                              comment
                                           and departure capacity but simply
closing Perth Airport would not be a                                                         APPROVAL        Anticipated
                                           caters for larger aircraft.
viable solution and an alternative site                                                                      2019 approval and
has not been identified. Any current       Therefore, extending the existing                                 decision to build
issues with noise from aircraft would      runway infrastructure would not cater
                                                                                               4 years to    CONSTRUCT
not lessen but simply shift the areas      for additional aircraft in peak periods.
                                                                                               construct
where people are affected.
                                                                                                   OPEN      2023 – 2028
                                                                                                             opening subject to
                                                                                                             actual demand and
                                                                                                             airline commercial
                                                                                                             agreement
Why do we need a new runway?
No new infrastructure                         This would have a significant economic       Tourism
Not constructing the new runway will          flow on effect to the State’s economy,       Air services are vital to WA’s tourism
result in flight delays and constrain         including $1.72 billion lost tourism         industry and the jobs it supports.
growth.                                       expenditure over 20 years if the             More than 90 per cent of visitors to
                                              runway is not built.                         WA come by air, with most arriving
Simulation modelling has shown that
                                              The new runway will allow more efficient     at Perth Airport. Spending by
delays would increase from an average
                                              scheduling of regional, domestic and         international and domestic tourists
of a five minutes in 2016 to 34 minutes
                                              international flights, while improving       helps to drive the WA economy.
by 2045. This would be unacceptable
to airlines and passengers.                   connectivity between business, tourism
                                              and employment, all of which support
                                                                                           Supporting the resource sector
To reduce the likelihood of delay, airlines   WA’s economic growth.                        Most fly-in fly-out workers are from the
would need to either change the time of                                                    Perth and Peel regions and rely on flights
flights to or from Perth and move flights     Social and Cultural Benefits                 with narrow departure windows, which
into the shoulder or non-peak periods,        Western Australians rely on air transport    are generally in the morning. The new
or change to larger aircraft.                 more than most other Australians for         runway will help to prevent costly delays
                                              work, education, recreation, health,         to both airlines and resource companies.
As Perth Airport is part of a national
and global aviation network, airlines         and to visit friends and family.
                                                                                           Productivity improvements
have limited scheduling opportunities         Perth Airport connects with more             Airlines will be able to more efficiently
or ‘windows’ within which Perth flights       than 50 intrastate, interstate, and          manage departures and arrivals and
can be scheduled, and, as a result, there     international destinations.                  reduce delays, saving on maintenance,
is little scope to spread traffic evenly
                                              The new runway will enhance                  crew and fuel costs.
across the operating day.
                                              and develop new services to new              It costs leisure travellers almost $50
Doing nothing would also significantly        destinations.                                for every hour they are delayed and for
constrain growth of flights to and from
                                                                                           business travellers it’s more than $155.
Perth. This restriction on growth would       Employment                                   By 2045, the new runway is forecast to
see unmet domestic and international          Perth Airport is a major employment          deliver a cumulative economic benefit
passenger demand exceed five million          centre. In 2014, the number of people        of $2.39 billion.
passengers per year. Over 20 years this       employed (both directly and indirectly)
would equal 41.8 million passengers not       was estimated at 12,570 aviation and         In 2013, the State Government
travelling to or from Perth.                  5,230 non-aviation-related full-time         estimated that congestion at Perth
                                              employees.                                   Airport was costing the airline industry
                                                                                           and its passengers an estimated
                                              During construction, the new runway          $72 million a year.
                                              will create 744 full-time jobs nationally.
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                                                                                                                                                                                                                                                                                                                               recommendation, the location
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                                                                                                                                                                                                                                                                                                                               north/south was first published in
                                         Terminal 1                                                                 Current Runways                                                                                                                                                                                            the Perth Airport Master Plan 1985
                                                                                                                                                                                                                                                                                                                               supported by the development
                                         Terminal 2                                                                 Proposed New Runway
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                                         Terminal 3                                                                                                                                                                                                                                                                            Exposure Forecast (ANEF)
                                         Terminal 4                                                                 Railway Line & Stations                                                                                                                                                                                    for Perth Airport. An ANEF is
                                         Airport Boundary                                                           Public Viewing Area                                                                                                                                                                                        a planning tool used to guide
                                                                                                                                                                                                                                                                                                                               appropriate development in the
                                                                                                                                                                                                                                                                                                                                                                    WAC1964 06.18

                                                                                                                    0                            500                              1,000                                                                                                                                        vicinity of an airport.
                                                                                                                                                METRES

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