Qantas to Put Brisbane Airport Terminal Lease On The Block
7th Mar 2014
Four years prior to its expiration in 2018, Qantas will lease back to Brisbane Airport Corporation the northern portion of the domestic terminal operation and other support facilities that the former leased from the latter for 30 years.
The action is a strategic move by Qantas who is planning to announce publicly later today. It is part of a series of fund-raising moves to be carried out in the next few years by the flag carrier which is undeniably flying through turbulent air pockets in recent years.
Qantas has a 30-year lease of the facilities with the Brisbane Airport Corporation which would expire in December 30, 2018.
The state flag carrier, though, will still keep the exclusive use and control of the particular facilities until the lease's expiry date on December 2018. Under the new arrangement, the airline is allowed to secure rights to important infrastructure beyond 2018.
Brisbane Airport Corporation, for its part, says it will carry out major upgrade to improve the facilities and services in the terminal which include the construction of additional lounges and improvement of the existing lounges. Furthermore, it will take back the control of the retail space within the leased portion of the terminal.
The airline is still allowed to use the runway system in the airport, including the new but still under-construction parallel runway, under the new agreement.
Alan Joyce, the Qantas Group CEO, remarked that the new lease agreement was a strategic move in order to harness the value of its non-core assets.