Sydney Airport buys back Qantas’s Terminal 3 lease for $535 million

Grounded Qantas aircraft at the airline's Sydney domestic terminal on October 30. (Damien Aiello)Sydney Airport has paid Qantas $535 million to buy back the airline’s lease over Terminal 3 in what the pair describe as a “win-win” for both parties.

The deal, announced on Tuesday, comes four years before Qantas’s 30-year lease over Terminal 3 was due to expire.

Sydney Airport said the transaction was “strategically important for future airport flexibility”.

From September 1 2015, Terminal 3 will revert from Qantas to Sydney Airport under a new 10-year deal.

“We’re delighted with the outcomes for both Sydney Airport and Qantas, resulting from a long-term, collaborative engagement,” Sydney Airport chief executive Kerrie Mather said in a statement.

“The agreement provides an equitable and fair outcome for both parties, as well as certainty for passengers and other airport users.

“We are excited to now have 100 per cent of our terminal footprint, to work closely with Qantas and from 2019 other airline partners using Terminal 3, and we look forward to continuing to provide passengers with a world-class experience.”

Sydney Airport said the fixed property rental it previously received for Teriminal 3 would cease and a new variable aeronautical, retail and property revenue streams, as well as operating expenses, would commence on completion of the transaction on September 1 2015.

Qantas’s 30-year lease on Terminal 3 was due to expire on June 30 2019. The company said it would continue to manage the terminal on behalf of Sydney Airport between September 1 2015 and June 30 2019.

“After that time, Qantas will retain priority usage to Terminal 3 through to 30 June 2025. Priority usage includes a majority of the terminal’s gates, check-in and baggage facilities,” Qantas said in a statement.

“Use of the terminal by Qantas from 1 September will incur a per-passenger charge at an agreed rate through to 2025.”

Qantas chief executive Alan Joyce said the agreement was strategically and financially positive for both parties, and for Qantas customers it will be business as usual.

“This deal secures Qantas’ long-term position in our largest hub, ensuring priority usage as the primary airline customer of Sydney’s Terminal 3,” Joyce said in a statement.

“We now have certainty about our future operations in Terminal 3 post-2019, and an outcome that is a win-win for both Qantas and Sydney Airport.”

Sydney Airport said Terminal 3 would be a common use terminal from mid-2019.

The two parties have been in regular talks in recent years regarding Sydney Airport buying back the lease.

Sydney Airport and Qantas were due to hold a conference call to discuss the transaction later on Tuesday.

Qantas said it was business as usual for the airline’s staff and customers.

 

Australian Aviation

Tigerair Australia leaves Tullamarine tin shed for new home at Terminal 4

The new Melbourne Airport Terminal 4. (Tigerair Australia/Facebook)
The new Melbourne Airport Terminal 4. (Tigerair Australia/Facebook)

Tigerair Australia has left the tin shed for a new home at Melbourne Airport.

The low-cost carrier has moved into the newly opened Terminal 4 at Melbourne Tullamarine, which features new technology automated checkin kiosks and bag drop facilities, as well as an expanded departure lounge and more shopping and food choices.

Tigerair chief executive Rob Sharp was at the airport to greet the first passengers through the new terminal when it opened for business just before 0500 on Tuesday.

Sharp said Terminal 4 would provide a vastly improved customer experience in Melbourne, Tigerair’s largest and busiest base.

“The move to our new home here in Melbourne is another significant milestone for Tigerair Australia as our transformation strategy continues to gather momentum,” Sharp said in a statement.

“The new terminal is symbolic of the new Tigerair reflecting a step change from the old terminal with which our customers are familiar.

“With the combination of the new-look Terminal 4 facilities and our roaming check in staff using the Max iPad app, our passengers will be able to check in more efficiently than ever before at Melbourne Airport.”

Tigerair Australia staff on the first day of operations at the new Melbourne Terminal 4. (Tigerair Australia/Facebook)
Tigerair Australia staff on the first day of operations at the new Melbourne Terminal 4. (Tigerair Australia/Facebook)
Tigerair Australia has new self-serve checkin kiosks at Melbourne Terminal 4. (Tigerair Australia/Facebook)
Tigerair Australia has new self-serve checkin kiosks at Melbourne Terminal 4. (Tigerair Australia/Facebook)
Tigerair Australia chief executive Rob Sharp with staff on the first day of operations at Melbourne Airport's new Terminal 4. (Tigerair Australia/Facebook)
Tigerair Australia chief executive Rob Sharp with staff on the first day of operations at Melbourne Airport’s new Terminal 4. (Tigerair Australia/Facebook)
Tigerair Australia checkin kiosks at Melbourne Airport's new Terminal 4. (Tigerair Australia/Facebook)
Tigerair Australia checkin kiosks at Melbourne Airport’s new Terminal 4. (Tigerair Australia/Facebook)

Melbourne Airport said in a fact sheet Jetstar and Regional Express (Rex) would move into Terminal 4, which has been designed to handle up to 10 million passengers a year, in the coming months.

“Passengers will experience a seamless journey through Terminal 4, which is the first terminal in the Asia Pacific region to open as a complete self-service operation,” Melbourne Airport said.

The departure lounge had enough seating for 1,200 people waiting for their flights and have 30 shops including Desigual, Country Road and WH Smith.

Tigerair had seven of its 13 Airbus A320 narrowbodies based at Tullamarine, with four A320s based at Sydney and a further two at Brisbane.

The airline, which is wholly-owned by Virgin Australia, is taking delivery of a 14th aircraft shortly which will boost its Sydney base to five aircraft.

Tigerair operates about 40 flights a day through Melbourne Tullamarine, including service to Adelaide, Brisbane, Cairns, Gold Coast, Hobart, Mackay, Perth and Sydney.

And from March 2016 it will commence international service for the first time with daily Melbourne-Bali, daily Perth-Bali and five times weekly Adelaide-Bali flights.

(Read more about Tigerair Australia in the September issue of Australian Aviation, on sale August 27.)

 

Australian Aviation

Qantas sells Sydney Airport terminal lease for $535 million

Qantas sells Sydney Airport terminal lease for $535 million

Sydney Airport will regain day-to-day ownership of the dedicated Qantas domestic terminal next month, paying Qantas $535 million to buy out the airline’s lease some five years ahead of schedule.

Terminal 3 has been the exclusive domain of Qantas for almost 30 years, with all other domestic airlines relegated to the neighbouring Terminal 2, although the lease was due to expire in  June 2019.

“This deal provides certainty,” Qantas CEO Alan Joyce said of the agreement. “The lease was always going to revert after 2019.”

 

Qantas will retain use “priority usage as the primary airline customer of Sydney’s Terminal 3” from 2019 to mid-2025, Joyce stressed, including access to most check-in and baggage facilities and departure gates, but from September would pay Sydney Airport Corporation a per-passenger fee, as does competitor Virgin Australia for the partial use of T2.

In the short term Sydney Airport will take over the running of T3 retail stores.

The longer game, however, remains a co-siting of domestic and international flights at the terminal, allowing more seamless connections for Qantas passengers transferring between Australian and overseas flights.

Sydney Airport CEO Kerrie Mather said that would not happen over the next five years but could be achieved before 2025.

“The integration of terminals is a key plank in our long-term master plan,” Mather re-iterated. “Acquiring Terminal 3 allows us to be able to achieve that.”

Qantas has already handed its Brisbane terminal lease back to Brisbane Airport in exchange for a $112 million fee and is looking to similar arrangements with Melbourne and Perth airports to further boost the airline’s bottom line.

 

Australian Business Traveller

Venda de ingressos para Ceará x Paraná começa nesta terça-feira

Confira os pontos de venda para o jogo da 20ª rodada da Série B

Korea DPR celebrates liberation

N. Korea celebrates liberation

North Korea holds a closing event for its celebration of the 70th anniversary of Korea’s independence from Japan’s 1910-45 colonial rule at Panmunjom, the truce village inside the demilitarized zone that divides the two Koreas, on Aug. 15, 2015. (KCNA-Yonhap) (END)

 

Yonhap News

Park Geun-hye consoles two soldiers injured in North Korean mine attack

 

SEOUL, Aug. 18 (Yonhap) — President Park Geun-hye has personally called and consoled the two young soldiers who were severely injured in the recent North Korean mine attack in the demilitarized zone, a government official said Tuesday.

The two staff sergeants, surnamed Kim and Hah, are recovering in hospitals after they lost limbs in the mine explosion on Aug. 4.

Last week, the South Korean military blamed North Korea for secretly burying the land mines in the South Korea-controlled half of the DMZ.

“I was very surprised and heartbroken upon hearing the news of your injuries,” Park was quoted by the official as telling Kim on the phone Saturday. Kim lost one leg in the explosion.

The president pledged the government’s best support for the recovery and rehabilitation of the wounded soldiers, also extolling the courage they have shown during and after the explosion, according to the official.

Kim promised Park a quick recovery, the official also said.

Calling Staff Sgt. Hah, who lost both legs, Park said, “You and other service members have greatly touched the heart of the public. It was an unfortunate provocation that should not have happened.”

Park’s message came as military tension is escalating at the border over the attack.

North Korea denied its involvement in the explosion, threatening to shoot down loudspeakers on the border that the South Korean military is using for propaganda warfare against the North as a retaliation measure.

On Monday, Park called on the military to maintain tighter combat readiness against North Korea and denounced the recent mine explosion as a “clear military provocation that was intended to kill or injure our soldiers.”

  pbr@yna.co.kr

(END)

Yonhap News