Qantas Airways Limited and Sydney Airport have today reached a commercial agreement that delivers long-term certainty to both for the airport\u2019s domestic Terminal 3.<\/p>\n
Under the terms of the 10-year deal Terminal 3 will revert from Qantas to Sydney Airport as of 1 September 2015. Qantas held a 30-year lease on the terminal, signed in 1989, which was due to expire on 30 June 2019.<\/p>\n
Qantas will receive total cash proceeds of $535 million from Sydney Airport, with a $210 million gain on sale being recognised in FY2016, outside of Underlying Profit Before Tax.<\/p>\n
The agreement is positive for Qantas shareholders, with the implied cost of funding being below the Group\u2019s weighted average cost of capital (WACC). The transaction will have a neutral impact on Earnings Before Interest and Tax through FY2019.<\/p>\n
In line with current operations, Qantas will retain exclusive use of Terminal 3 and will continue to manage most of the terminal on behalf of Sydney Airport until 30 June 2019.<\/p>\n
After that time, Qantas will retain priority usage to Terminal 3 through to 30 June 2025. Priority usage includes a majority of the terminal\u2019s gates, check-in and baggage facilities.<\/p>\n
Use of the terminal by Qantas from 1 September will incur a per-passenger charge at an agreed rate through to 2025.<\/p>\n
Qantas Group Chief Executive Officer Alan Joyce said the agreement was strategically and financially positive for both parties, and for Qantas customers it will be business as usual.<\/p>\n
\u201cThis deal secures Qantas\u2019 long-term position in our largest hub, ensuring priority usage as the primary airline customer of Sydney\u2019s Terminal 3.<\/p>\n
\u201cWe now have certainty about our future operations in Terminal 3 post-2019, and an outcome that is a win-win for both Qantas and Sydney Airport.\u201d<\/p>\n
Qantas and Sydney Airport have concurrently agreed five-year agreements covering Qantas\u2019 domestic runway charges and Qantas and Jetstar\u2019s international aeronautical charges.<\/p>\n
In welcoming the deal, Sydney Airport Managing Director and Chief Executive Officer Kerrie Mather said: \u201cWe\u2019re 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.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Qantas Airways Limited and Sydney Airport have today reached a commercial agreement that delivers long-term certainty to both for the airport\u2019s domestic Terminal 3. Under the terms of the 10-year deal Terminal 3 will revert from Qantas to Sydney Airport as of 1 September 2015. Qantas held a 30-year lease on the terminal, signed in<\/p>\n","protected":false},"author":3,"featured_media":1998,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"none","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[162],"tags":[],"class_list":["post-1973","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"publishpress_future_action":{"enabled":false,"date":"2026-01-18 00:29:13","action":"change-status","newStatus":"draft","terms":[],"taxonomy":"category","extraData":[]},"publishpress_future_workflow_manual_trigger":{"enabledWorkflows":[]},"_links":{"self":[{"href":"https:\/\/www.mtatravel.com.au\/wp-json\/wp\/v2\/posts\/1973","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.mtatravel.com.au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.mtatravel.com.au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.mtatravel.com.au\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.mtatravel.com.au\/wp-json\/wp\/v2\/comments?post=1973"}],"version-history":[{"count":1,"href":"https:\/\/www.mtatravel.com.au\/wp-json\/wp\/v2\/posts\/1973\/revisions"}],"predecessor-version":[{"id":2003,"href":"https:\/\/www.mtatravel.com.au\/wp-json\/wp\/v2\/posts\/1973\/revisions\/2003"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.mtatravel.com.au\/wp-json\/wp\/v2\/media\/1998"}],"wp:attachment":[{"href":"https:\/\/www.mtatravel.com.au\/wp-json\/wp\/v2\/media?parent=1973"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mtatravel.com.au\/wp-json\/wp\/v2\/categories?post=1973"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mtatravel.com.au\/wp-json\/wp\/v2\/tags?post=1973"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}