New deal will see Qantas pay Sydney Airport for every passenger

SYDNEY Airport has long been criticised for its high charges — so do Qantas customers have anything to fear from its new multi-million dollar deal?

SYDNEY Airport will take control of the Qantas terminal known as T3 from September, and start charging the airline a per-passenger charge.

The $535 million deal will give Qantas priority use of the terminal, including gates, lounges, security and baggage carousel facilities, through to 2025.

The main difference will be from September 1, when Qantas will pay Sydney Airport a “per-passenger charge” at an agreed rate.

Although the change is not expected to make a “significant difference” to fares, Sydney Airport has attracted criticism from the Australian Competition and Consumer Commission for high charges.

Changes ahead ... Qantas will become a tenant of Sydney Airport, in a move that could raise fares. Picture: AP Photo/Rick Rycroft

The ACCC’s most recent Airport report found aeronautical revenue per passenger at Sydney was the highest in the country but services were rated “lower quality”.

Currently airlines using Terminal 2 pay the airport $8.58 for each arrival, and $9.44 for departing passengers.

Due to the large volume of passengers using the Qantas terminal, charges per passenger are expected to be at a reduced rate, although Sydney Airport Corporation declined to specify how discounted this rate would be.

Beyond 2025, Qantas is expected to co-locate its domestic and international operations to one terminal as part of the Sydney Airport masterplan.

Qantas Group CEO Alan Joyce said the agreement offered certainty to the airline as it neared the end of its 30-year lease on the site.

Win-win ... Qantas Group CEO Alan Joyce is happy with the deal struck with Sydney Airport. Picture: Ray Strange/News Corp Australia

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

“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 airports.”

Sydney Airport Managing Director and Chief Executive Officer Kerrie Mather said the deal had been a long time coming but the result was positive.

Delighted ... Sydney Airport managing director and CEO, Kerrie Mather, is happy with the deal struck with Qantas. Picture: Justin Lloyd/News Corp Australia

“We’re delighted with this agreement which is the result of long-term and collaborative engagement between Sydney Airport and Qantas and delivers a positive outcome for both parties,” said Ms Mather.

Despite the potential for other airlines to share Terminal 3 Mr Joyce said he “did not envisage there would be the capacity to accommodate other carriers”.

“You can imagine with the scale and size of Qantas, we will be by far the largest, largest carrier,” he said.

“It will remain the best domestic terminal in the world.”