Non-stop flights between Perth and London will start in March 2018 delivering a visitor spending windfall to Western Australia.
Premier and Tourism Minister Colin Barnett said the game-changing deal had the potential to inject more than $36 million a year into the local economy when the Qantas Boeing 787-9 Dreamliner started the long-haul route.
In helping to secure a deal between the airline and Perth Airport Pty Ltd, the Liberal National Government has committed $14 million for capital works to accommodate infrastructure requirements for Commonwealth border services at domestic terminal T3.
"The State Government played an intermediary role in negotiations and our contribution is based on border control, quarantine and immigration services at T3 being an interim measure with Qantas committing to relocate to the international terminal T1 by 2025," Mr Barnett said.
"This is an appropriate funding contribution by the Government.
"Today's announcement is fantastic for West Australians with the non-stop service making travel to the UK more appealing and over time it is expected it will open up the potential for direct routes to and from other European cities.
"The tourism benefits to the State are enormous. The service will create opportunities for people to stop over in Perth for a day or two if en route to or from another Australian destination.
"With Perth's large UK expat population, direct flights are anticipated to drive increased visitation from visiting friends and relatives. In addition, direct services from a Qantas hub are likely to improve trade links.
The Premier said a Qantas hub was also expected to create new jobs at the national carrier in Perth and within businesses providing support services to hub operations.
"It is anticipated Qantas will increase the number of pilots based in Perth as well as job opportunities on the ground and there is also potential for Western Australian produce to be used on the long haul flights," he said.
Mr Barnett congratulated Qantas and Perth Airport on negotiating a deal which would have far-reaching benefits for the State.
Premier and Tourism Minister's office - 6552 5000