Qantas will sell its long-term Brisbane Airport terminal lease back to Brisbane Airport Corporation for $112 million in the first of a series of fund-raising moves to be announced later today.
Qantas holds a 31 year lease on the northern end of the Domestic Terminal at Brisbane Airport which is due to expire on 30 December 2018.
Under the new arrangements, Qantas will retain exclusive use and operational control over much of the northern end of the terminal until the end of 2018 while securing rights to key infrastructure beyond this period.
Brisbane Airport Corporation says it will make "a significant investment in upgrading and improving facilities and services within the terminal, such as lounges" and will also take over control of the retail space in that part of the terminal.
The arrangement also covers Qantas' use of the runway system at Brisbane Airport, including the new parallel runway which is currently under construction.
Qantas Group CEO Alan Joyce said the agreement was "in line with our strategy of unlocking value in non-core assets."
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About David Flynn
David Flynn is the editor of Australian Business Traveller and a bit of a travel tragic with a weakness for good coffee, shopping and lychee martinis.