Sydney Airport in Australia has bought back its lease for Terminal 3 (T3) from Qantas airlines for A$535m (US$393m). As such, the two parties have now put in place a new 10-year commercial agreement that will benefit both, although ownership of T3 will revert back to Sydney Airport as of September 1, 2015. Qantas purchased the 30-year lease for the domestic terminal in 1989, which was due to expire on June 30, 2019.
Under the new agreement, Qantas will retain exclusive use of T3 and will continue to manage most of the terminal on behalf of Sydney Airport until June 30, 2019. After that time, Qantas will retain priority usage of T3 through to June 30, 2025. Priority usage includes a majority of the terminal’s gates, check-in and baggage facilities.
Alan Joyce, group CEO for Qantas, said, “This deal secures Qantas’ long-term position in our largest hub, ensuring priority usage as the primary airline customer of Sydney’s T3.
“We now have certainty about our future operations in T3 post-2019, and an outcome that is a win-win for both Qantas and Sydney Airport.”
Kerrie Mather, managing director and CEO for Sydney Airport, said, “We’re delighted with this agreement, which is the result of long-term and collaborative engagement between Sydney Airport and Qantas, and delivers a positive outcome for both parties.”