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Qantas and Gold Coast agreement to facilitate terminal development

Analysis

Gold Coast Airport (GCAPL) and Qantas Airways entered an agreement

to facilitate a AUD100 million redevelopment of terminal facilities at the airport.

Under the current arrangements, Qantas Groups Airlines, Qantas and Jetstar operate from the Southern end of the terminal, Terminal One (T1). Virgin Blue and the international carriers Freedom Air, Pacific Blue and Jetstar International operate from the Northern end, Terminal Two (T2). T2 is a common user facility whilst T1 is dedicated to Qantas. The agreement with Qantas will permit the whole terminal to be used as a common user facility and facilitate a redevelopment as effectively one terminal.

GCAPL CEO, Paul Donovan, said the agreement will significantly increase the range of facilities including shopping and F&B outlets available in the new terminal. "We will be working with the current concessionaires in this regard as well as creating significant efficiencies in the introduction of new security procedures. "Subject to the receipt of the planning and guidelines approvals from the Federal Government this allows GCAPL to proceed with the detailed planning and tendering of the terminal upgrade," Mr Donovan said.

The terminal expansion and redevelopment will be undertaken over a two-year period and involves the construction of an extension to the airside of the current building and significant renovation of the existing terminal. This follows the opening of the USD25 million runway extension project. "Together these projects will accommodate our anticipated growth from the nearly four million passengers at present to around seven million in 10 years," Mr Donovan said. "This agreement is timely given our continued growth expectations heightened by last weeks announcement by Jetstar that it would introduce three additional daily services to the Gold Coast from Sydney and Melbourne," Mr Donovan said.

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