Virgin airport plans stall again

Virgin Australia's new $190 million showpiece terminal has been delayed yet again and will not open until late this year, leaving the airline's executives exasperated.

The terminal, which had been due to open in June last year, has been plagued by problems that have cost Virgin Australia tens of millions in lost revenue and operational inefficiencies.

Virgin Australia chief executive John Borghetti said yesterday it was "disappointing that the launch of the terminal has been delayed yet again".

Insiders say the airline's executive team is dismayed and perplexed by the delays.

And there is no guarantee that the latest delay will be the last, airport insiders say.

Perth Airport chief executive Brad Geatches said: "As the final phases of the construction proceed, the date for completion and commissioning for the first day of operations of the Terminal 1 Domestic Pier will change based on updates from the builder."

He added that "we believe that, following practical completion and commissioning, operations will commence in the second half of 2015.

"We have no further updates to advise the public at this stage."

Mr Geatches flew to Brisbane last week to deliver the bad news in person to Virgin chief operating officer Gary Hammes.

In May, Mr Borghetti lashed out at the airport, saying the delays were costing the airline money.

Virgin has been forced to operate out of two terminals on opposite sides of the airport since March 2013, creating problems for passengers transferring between flights.

The airport's other major project, upgrading the International Terminal (T1), is also running late.

Last year, Perth Airport terminated part of its contract with Broad Construction Services for the expansion of T1's departures area.

Broad had completed the international arrivals area but the revamped departures area, now being completed by another construction company, is still a work in progress.