Geoffrey Thomas: WA’s economic development future-proofed after approval of second parallel runway

After decades of research and analysis, WA’s economic development is future-proofed with a second parallel runway approved for Perth Airport. But before the first jet takes off, there is the small matter of who pays for the $520 million runway. Typically, all airlines need to agree to a runway construction, which is paid for via a passenger tax. However, globally airlines and airports are devastated by the pandemic with losses of well over $100 billion this year. They cannot at the moment raise passenger prices to help fund a runway that is two years away. It is the resources industry that must step up, for it is their critical and non-negotiable requirements that dictate the schedules that create the peak demands. In what would be a unique business model for an airport, the industry needs help fund the runway if it wants to maintain its rostering system of early-morning departures. The industry is no stranger to building runways and it needs to be part of the solution. It could also be argued that the State should play a role in funding the runway, given the airport is arguably the most important piece of infrastructure in WA. It would be nice if the airport could spread the arrivals and departures evenly through the day and week but that is not how it works. A funding model needs to be agreed by the end of the first quarter of next year, with construction to start immediately and be completed by June 2023.