Qantas Group and Melbourne Airport to unlock more flights, airport expansion

Qantas Group and Melbourne Airport have reached a commercial agreement in relation to key terms that will pave the way for more flights, international lounge upgrades, check-in enhancements and delivery of the airport’s third runway. The agreement with the Qantas Group will help support Melbourne Airport’s $4.5 billion international terminal expansion program, including five additional widebody gates, supporting the Group’s long-term growth plans. In addition to the terminal expansion, the agreement includes a 15-year commitment for Melbourne Airport’s third runway, which is scheduled to open in 2031.The plans also provide significant room for Jetstar to grow, with Melbourne Airport already the low-cost carrier’s largest port, operating up to almost 1,000 flights per week in peak periods and accounting for around 45 per cent of its overall domestic passengers.

Qantas is also designing a new International Business Lounge, which will give customers sweeping views of the airport from a new space built above Terminal 2. The lounge will be up to one-third larger than the existing footprint to meet growing demand from premium travellers and Frequent Flyers. Works on the new lounge and fit out are expected to be completed by 2029.

Melbourne Airport’s terminal upgrades will offer Qantas international customers a faster, more streamlined check-in experience, premium check-in areas, and upgraded automatic bag drops facilitated by the recently commissioned, state-of-the-art baggage handling system and early baggage storage facility.Travellers arriving at Australia’s largest 24-hour gateway will benefit from an expanded baggage reclaim hall and additional space for Australian Border Force operations.

Qantas intends to base some of its Airbus A350-1000LRs at Melbourne Airport, which will enable the airline to operate flights to new international destinations. These aircraft are part of the airline’s order for 12 Airbus A350-1000LRs, which are in addition to the Project Sunrise ultra-long-range aircraft. Qantas and Melbourne Airport will execute final agreements in the coming months.

Qantas Group Chief Financial Officer Rob Marcolina commented: “This will unlock growth for both Qantas and Melbourne Airport and improve the travel experience for millions of our customers every year. From check-in to our lounge experience to our new fleet, we’re investing right across our business to reshape the way our customers travel to and from Melbourne. Basing some of our new A350-1000LRs in Melbourne will unlock a range of new destinations that aren’t possible today. Qantas and Jetstar currently fly to 17 international destinations from Melbourne and we look forward to increasing that number, helping to connect more Australians with the world, and growing Victoria’s tourism economy.”

Melbourne Airport Chief Executive Officer Lorie Argus stated: “We’re proud to be Australia’s largest 24-hour gateway and pleased to be partnering with Qantas to deliver the most significant upgrade to Melbourne Airport in its history. Our partnership will bring together Melbourne Airport's investment in critical infrastructure with the Qantas Group’s investment in aircraft, customer experience and network growth, creating new opportunities for travellers and Victoria's economy. Our investment in a third runway opening in 2031, coupled with the Qantas Group's 15-year agreement supporting its delivery, is a significant vote of confidence in Melbourne. The new Qantas International Business Lounge will deliver significant improvements for their premium customers and will boast one of the best views at the airport. We look forward to working with both Qantas and Jetstar to grow and enhance their customer offerings over the coming years.”