Sydney Airport in New South Wales, Australia, is to divide its space into two airline alliance-based precincts to improve traffic flow throughout the airport.

The proposed regeneration will provide more aircraft gates/parking and allow for future terminal expansion.

The proposal will split the airport into two areas, one for Qantas and one for Virgin, to integrate international, domestic and regional services under one roof by 2019.

As part of the plan, the current domestic terminals, T2 and T3, will accommodate Qantas Group, its international partners and Jetstar, while Virgin Australia and its international alliance members will operate from international terminal T1.

According to the airport, under the proposal, the connection times will be faster for passengers and aircraft turnaround times, and will guarantee ongoing access by regional airlines to the airport.

Sydney Airport CEO Kerrie Mather said this initiative has the potential to transform aviation in New South Wales.

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"First, it would improve Sydney Airport’s attractiveness as a global hub and deliver a better passenger experience every day," he said. "Second, as Sydney Airport invests in its future, it would bring with it growth in tourism and business travel, which would lead to job creation and contribute to New South Wales’s economic prosperity."

The plan also includes the construction of a new Qantas engineering complex for line maintenance to support the airline’s current and future fleet, and a new Virgin Australia hanger for wide and narrow-body aircraft as a maintenance base.

The proposal, which requires detailed design and analysis, is awaiting the 2014 Master Plan approval.

The airport will begin external stakeholder consultation with the airlines, airport-related businesses, border agencies, regulatory authorities and local, state and federal governments.

The proposal will be considered in the context of the airport’s 2014 master plan, which will begin in late 2013.

Sydney Airport has signed non-binding memoranda of understanding (MoU) with its major domestic airline customers, the Qantas Group and Virgin Australia to progress the proposal.

The MoU between Sydney Airport and the Qantas Group includes a commitment to explore the benefits and financial implications of an early reversion of long-term leases.

Caption: Sydney Airport plans to build a new Qantas engineering complex and a new Virgin Australia hanger.