Qantas’ Sydney savings shift
05 / 12 / 2011
SYDNEY Airport (Australia) plans to move Qantas, Jetstar and the group’s international alliance partners, including British Airways, under one roof at the current domestic terminals T2 and T3.
This means Qantas stands to pocket more than AU$350 million (US$358 million) by handing back long-term leases on its domestic terminal and its jet and freight bases, years before they expire.
The money will come in handy after Qantas grounded its 108-strong fleet from 29-31 October, leading to the cancellation of 600 cargo and passenger flights. Strikes followed disputes with three unions over jobs and wages.
Qantas has been the subject of speculation that it will end the lease on T3 before it expires in 2019. The leases on the two other assets expire in 2020.
The proposals stand to make Sydney Airport more competitive against its rivals, such as Melbourne’s Tullamarine.
Under the proposal, Virgin Australia would also shift all of its operations to the international terminal.