Qantas has reached an agreement with the Brisbane Airport Corporation to dispose of its 31-year Domestic Terminal lease that is due to expire at the end of 2018 in return for A$112 million (US$100 million) in cash from BAC, according to Shipping Gazette.
Under the new arrangements, the airline would retain exclusive use and operational control over much of the northern end of the domestic terminal until the end of 2018 while securing rights to key infrastructure beyond this period.
The deal also covers Qantas' use of the runway system at Brisbane Airport, including current infrastructure and the new parallel runway that is under construction.
In addition, BAC plans to make a significant investment in upgrading and improving facilities and services within the domestic terminal, such as the lounges, and will assume control of the retail space of this part of the terminal.
Said BAC chief executive Julieanne Alroe: "This agreement is the welcome completion of BAC's negotiations with our airline customers over the development of the new parallel runway," she said.
"It will also 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."
Qantas group chief executive officer Alan Joyce said the agreement was a win-win for both parties and would bring significant benefits to Queensland.
"Brisbane Airport is one of the most important airports for Qantas today and increasingly so into the future. This investment is vital to the on-going growth of aviation in Queensland," Mr Joyce said.
-
Company DirectoryFreight RateExport RateAgency PartnershipCargo Leads