Qantas looking at possible Sydney Terminal sell-off: AFR

Qantas is once again looking at potentially selling off its Sydney Airport terminal and replacing it with a long-term lease, despite plans to do so falling through in 2004.

According to a report in the Australian Financial Review, Qantas is once again reviving plans to sell off its Sydney Airport terminal in order to make its costs more flexible in times of low demand.

e-Travel Blackboard sought confirmation of talks with the airline from Sydney Airport, but a spokesperson refused to comment citing it was a “Qantas issue”.

“Qantas constantly reviews its non-flying capital assets,” said a spokesperson for Qantas to e-Travel Blackboard.  “The article in the AFR is purely speculation.”

While Qantas states that it has “no current plans for the sale of T3”, it will not confirm or deny talks with Sydney Airport.

In 2004, Qantas planned to sell-off its terminals at Sydney, Melbourne and Perth.  All plans were eventually scrapped after it was believed the airline did not receive the figure that it wanted for them.

Hoping for almost AU$1 billion back then, the deals would have enabled Qantas to switch its fixed costs to variable costs, and as such in times of recession like the last year, the airline would have been able to scale back its terminal costs.

Australia allows its domestic carriers to own its own terminals within the country.