Australian flag carrier airline Qantas has agreed to sell back its long-term lease on the northern end of the domestic terminal at Brisbane Airport to Brisbane Airport Corporation (BAC) for $112m.
The 31 year lease was signed in 1987, and was due to expire on 30 December 2018.
The move comes at a time when the struggling airline announced thousands of job cuts, financial losses to the tune of over $200m, and sought help from the government.
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 important infrastructure beyond this period.
BAC plans to upgrade and improve facilities and services within the terminal such as lounges, and will assume control of the retail space of this part of the terminal.
The arrangement also covers Qantas' use of the runway system, including current infrastructure and the new parallel runway, currently under construction at Brisbane Airport.
The agreement on the new parallel runway is in line with the Qantas' plan of not pre-funding airport infrastructure before actually using it.
Qantas Group CEO Alan Joyce said: "Brisbane Airport is one of the most important airports for Qantas today and increasingly so into the future. This investment is vital to the ongoing growth of aviation in Queensland which helps drive tourism and boost the economy.
"Qantas customers will continue to enjoy the faster smarter check in facilities, lounges and gate access with further improvements to be made in the near future."
BAC CEO and managing director Julieanne Alroe said: "This agreement is the welcome completion of BAC's negotiations with our airline customers over the development of the new parallel runway.
"It will also allow us to invest, over time, in better facilities and services at the northern end of the domestic terminal. BAC has a forward investment plan of more than $2.5 billion in improvements at Brisbane over the next decade."
Image: BAC plans to improve facilities and services within the terminal. Photo: courtesy of Brisbane Airport Corporation.