The Qantas Group and Melbourne Airport have reached a commercial agreement on key terms that will support more flights, international lounge upgrades, check-in enhancements and delivery of the airport’s third runway. Final agreements are expected to be executed in the coming months.
The deal will help support Melbourne Airport’s A$4.5bn (US$3.1bn) international terminal expansion program, including five additional widebody gates, and includes a 15-year commitment from Qantas backing the airport’s third runway, scheduled to open in 2031.
The agreement also provides room for Jetstar to grow at Melbourne, already the low-cost carrier’s largest port, where it operates up to almost 1,000 flights per week at peak times and accounts for around 45% of its overall domestic passengers.
Qantas is designing a new International Business Lounge above Terminal 2, up to one-third larger than its current footprint, to meet growing demand from premium travelers and frequent flyers. The lounge and fit-out work is expected to be completed by 2029.
Terminal upgrades will offer Qantas international customers a faster check-in experience, premium check-in areas and upgraded automatic bag drops, supported by Melbourne Airport’s recently commissioned baggage handling system and early baggage storage facility. Arriving travelers will also benefit from an expanded baggage reclaim hall and additional space for Australian Border Force operations.
Qantas intends to base some of its Airbus A350-1000LRs at Melbourne, part of its order for 12 of the aircraft which are in addition to its Project Sunrise ultra-long-range fleet, enabling flights to new international destinations.
Qantas Group chief financial officer Rob Marcolina said, “This will unlock growth for both Qantas and Melbourne Airport and improve the travel experience for millions of our customers every year. From check-in to our lounge experience to our new fleet, we’re investing right across our business to reshape the way our customers travel to and from Melbourne.
“Basing some of our new A350-1000LRs in Melbourne will unlock a range of new destinations that aren’t possible today. Qantas and Jetstar currently fly to 17 international destinations from Melbourne and we look forward to increasing that number, helping to connect more Australians with the world, and growing Victoria’s tourism economy.”
Melbourne Airport chief executive officer Lorie Argus said, “We’re proud to be Australia’s largest 24-hour gateway and pleased to be partnering with Qantas to deliver the most significant upgrade to Melbourne Airport in its history. Our investment in a third runway opening in 2031, coupled with the Qantas Group’s 15-year agreement supporting its delivery, is a significant vote of confidence in Melbourne.”
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