MAp Group proposes to merge international, domestic terminals at Sydney Airport

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Airport operator MAp Group is proposing a major overhaul to integrate the domestic and international terminals at Sydney Airport by 2019.

The operator wants the terminals to be organised and focused around the country's two major airlines and their international partners.

Under the plan, the current domestic terminals - T2 and T3 - will house the Qantas Group, including Jetstar and the group's international partners.

The current international terminal - T1 - will meanwhile accommodate Virgin Australia and its partners. Other international airlines will also operate out of T1.

Where other domestic and regional carriers such as Tiger, Rex, AeroPelican and Brindabella will operate, however, is still undecided.

Sydney Airport CEO Kerrie Mather said the proposed reconfiguration would make better use of existing facilities, provide for more aircraft gates and parking and allow for future terminal expansion. It will also improve passenger experience through faster connect times and more efficient operations.

"From an airport operations perspective this would reduce aircraft turnaround times, largely eliminate towed main runway crossings and produce a better environmental outcome through reduced aircraft emissions," he added.

The airport has also signed non-binding memorandums of understanding with Qantas Group and Virgin Australia on the proposal.

The agreement between the airport and Qantas Group includes a commitment to explore the benefits and financial implications of reversing the airline's long-term leases early. Qantas group currently has long-term leases on airport land, which includes T3, the Qantas Jet Base and the Qantas Freight Base.

The proposal also includes the construction of a new Qantas Engineering complex for line maintenance and a new Virgin Australia hangar for wide and narrow-body aircraft.

The proposal, however, is still at a concept level and will now undergo consultation with the airport's stakeholders before further decisions are made.