Qantas will shift all Sydney flights for its regional QantasLink arm from Sydney Airport's Terminal 2 to the dedicated T3 Qantas Domestic Terminal from August 15.
QantasLink flies one million passengers each year through Sydney T2, with a scheduled 300 flights per week.
The move will streamline transfers and speed connections for QantasLink passengers, both onto domestic and international Qantas flights.
"Bringing Qantas domestic flights and QantasLink together in the one terminal at Sydney Airport is a major milestone for Qantas and will improve the customer experience, as well as our on time performance" the airline says.
It will also give QantasLink travellers access to the airline's best Qantas Business Lounge and Qantas Club.
Terminal 2 Qantas Club to close
Earlier this year a Qantas spokesperson told Australian Business Traveller that Jetstar flights will remain at T2, but confirmed that T2's Qantas Club lounge will close once QantasLink shifts to T3.
"The T2 Qantas lounge will continue to operate while QantasLink is in the terminal and close thereafter" she said.
"Jetstar has no plans to take over the lounge. Eligible Qantas lounge passengers travelling on Jetstar will be able to visit Qantas lounges in T3."
However, the airline has no plans to expand either of its T3 lounges to cope with an increase in travellers.
"Our lounge facilities in T3 have capacity for QantasLink customers" the spokesperson said, adding that "different peaks in the QantasLink and Qantas schedule will also assist in managing resources."