The Qantas Group and Melbourne Airport have reached a commercial agreement covering airport expansion, additional flights and passenger facilities, including a 15-year commitment supporting the airport’s third runway.
The agreement will support Melbourne Airport’s A$4.5 billion (US$3 billion) international terminal expansion, which will add five widebody gates. The third runway is scheduled to open in 2031.
Qantas also intends to base some of its Airbus A350-1000LR aircraft in Melbourne, allowing the airline to serve international destinations that are not currently within its network from the city. The aircraft are part of a 12-aircraft order separate from the A350-1000ULRs earmarked for Project Sunrise.
Qantas and Jetstar currently serve 17 international destinations from Melbourne. The plans also provide capacity for Jetstar to expand at the airport, where it operates almost 1,000 flights a week during peak periods and handles around 45 per cent of its domestic passengers.
Passenger facilities will also be upgraded. Qantas is planning a new International Business Lounge above Terminal 2, up to one-third larger than its existing facility and scheduled for completion by 2029.
Terminal improvements will include upgraded check-in areas, automated bag drops, an expanded baggage reclaim hall and additional space for Australian Border Force operations.
Final agreements between Qantas and Melbourne Airport are expected to be signed in the coming months.
Rob Marcolina, chief financial officer, Qantas Group, said: “Basing some of our new A350-1000LRs in Melbourne will unlock a range of new destinations that aren’t possible today.
“Qantas and Jetstar currently fly to 17 international destinations from Melbourne and we look forward to increasing that number, helping to connect more Australians with the world, and growing Victoria’s tourism economy.”
Lorie Argus, CEO, Melbourne Airport, added: “Our investment in a third runway opening in 2031, coupled with the Qantas Group’s 15-year agreement supporting its delivery, is a significant vote of confidence in Melbourne.”
