The arrangements will see the airline dispose of its long-term lease on its terminal, which is due to expire on December 30, 2018.
The news comes on the back of Qantas announcing today, it was to cut 5,000 jobs (about 15% of its workforce) after it revealed a pre-tax loss of A$252 million (€164 million) for the second half of 2013.
Under the new arrangements, Qantas retains exclusive use and operational control over much of the northern end of the terminal until the end of 2018, while securing rights to key infrastructure beyond this period.
BAC says it plans to make a significant investment in upgrading and improving facilities and services within the terminal, such as lounges and will assume control of the retail space at the terminal.
Qantas will receive A$112 million from BAC under the arrangements, which also covers Qantas’ use of the runway system at Brisbane Airport, including current infrastructure and the new parallel runway, currently under construction.
BAC’s CEO and managing director Julieanne Alroe, says the agreement was an important step in the future of Brisbane Airport.
“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 A$2.5 billion in improvements at Brisbane over the next decade,” Alroe adds.
Qantas Group chief executive officer, Alan Joyce, says the agreement was a win-win for both parties, which would have significant benefits to Queensland.
“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,” Joyce says.