Melbourne Airport has reached a new agreement with Qantas over the assets and operation of Terminal 1 (T1), its domestic terminal.
The transaction includes a 10-year access agreement for Terminal 1, with all aeronautical and retail assets transferring to Melbourne Airport. Qantas retains exclusive access to Terminal 1, including lounges, for domestic services.
Options to operate some international flights from Terminal 1 outside of peak domestic times will be assessed. The deal netted Qantas A$355m (US$244m), of which A$276m (US$190m) will be received in cash in this financial year, with the remaining value to be accrued in future periods.
The T1 Operational Licence will take effect on July 1, 2019, with the new arrangements being phased in, so as to minimize disruption for passengers. Melbourne Airport Chief Executive Officer Lyell Strambi, described the arrangement as the product of the airport’s strong relationship and history with the Qantas Group.
“We’ve been very focused on delivering a better passenger experience. First and foremost, we want to improve efficiency and reduce the stress of travel, but our research tells us that today’s passengers are looking for more. Better range and choice of what they eat and drink, and retail options to satisfy everything from travel essentials to luxury. With the certainty we can now give tenants, the first step will be to reopen a number of locations,” Strambi said.
The Terminal 1 agreement, alongside Terminal 3 and Terminal 4 agreements and the Airport Aeronautical Services Agreement (which is agreed with all 47 airlines at Melbourne), underpins the airport’s investment program, which has been designed to provide the necessary capacity and quality of service for the growing airline community operating to and from Melbourne Airport.