Qantas will receive A$112 million ($100 million) in cash proceeds from the sale of its domestic terminal at Brisbane airport as part of a new commercial agreement between the two parties.
The new agreement also covers charges and funding for Brisbane’s new parallel runway (NPR) project, which had been a major sticking point for the two parties.
Qantas will retain exclusive use of and operational control over most of the terminal until the end of its lease in 2018, while the airport will take control of the retail space and make further investment in the terminal’s facilities.
Qantas chief executive Alan Joyce says that the agreement is “in line with our strategy of unlocking value in non-core assets.”
In a separate statement, Qantas adds that it is continuing discussions to sell the lease on its terminals in Sydney and Melbourne as part of that strategy.
Joyce adds the agreement to fund the NPR is consistent with the airline’s previous objection to Brisbane airport’s proposed funding model. Under that plan, an additional user fee would have been levied on passengers when construction commenced last year, many years before the runway is due to become operational in 2020.
Virgin Australia last year also reached an agreement with Brisbane airport to fund the NPR, while the airport has bought and leased back the airline’s maintenance hangar there.
Brisbane airport chief executive Julieanne Alroe welcomed the new agreement with Qantas, which will support the expansion of the airport.
“It will also allow us to invest, over time, in better facilities and services at the northern end of the Domestic Terminal. [Brisbane Airport Corporation] has a forward investment plan of more than [A]$2.5 billion in improvements at Brisbane over the next decade,” she says.