AUSTRALIA. Qantas and Brisbane Airport Corporation (BAC) have reached a commercial agreement over the Domestic Terminal, which will allow BAC to assume control of retail space and improve facilities and services.
Qantas holds a 31-year lease, signed in 1987, on the northern end of the Domestic Terminal at Brisbane Airport which is due to expire on 30 December 2018.
Under the new agreement, the airline will dispose of its long-term lease on its terminal, retaining exclusive use and operational control over much of the northern end until the end of 2018 while securing rights to key infrastructure beyond this period.
BAC plans to make a significant investment in upgrading and improving facilities and services within the terminal,. It will also assume control of the retail space for this part of the terminal.
Qantas will receive total cash proceeds of A$112 million from BAC under the arrangements.
The deal also covers Qantas’ use of the runway system at Brisbane Airport, including current infrastructure and the new parallel runway, currently under construction.
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Brisbane Airport Corporation will invest in upgrading and improving facilities and services within the Domestic Terminal while assuming control of the retail space of the northern end |
Qantas Group Chief Executive Officer Alan Joyce said: “The deal is in line with our strategy of unlocking value in non-core assets. Brisbane Airport is one of the most important airports for Qantas today and increasingly so into the future. This investment is vital to the ongoing growth of aviation in Queensland which helps drive tourism and boost the economy.
“Qantas will continue to offer the most flights of any airline from Brisbane to the most destinations. Qantas customers will continue to enjoy the faster smarter check-in facilities, lounges and gate access with further improvements to be made in the near future.”
BAC CEO and Managing Director Julieanne Alroe said: “[This] will allow us to invest, over time, in better facilities and services at the northern end of the Domestic Terminal. BAC has a forward investment plan of more than A$2.5 billion in improvements at Brisbane over the next decade.”
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