Sydney Airport buys back T3 from Qantas

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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.”

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Helen has worked for UKi Media & Events for nearly a decade. She joined the company as assistant editor on Passenger Terminal World and since progressed to become editor of five publications, covering everything from aviation, logistics and e-commerce to meteorology. She has a love for travel and property and has redeveloped three houses in three years. When she’s not editing magazines, she’s running around after her two boys and their partner in crime, Pete the pug.

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