Qantas and Melbourne Airport Agree on $4.5 Billion Expansion Plan
Qantas Group and Melbourne Airport have formalized a strategic commercial agreement that will lay the groundwork for a substantial increase in flights, technological upgrades to passenger and baggage processing, and the modernization of international VIP lounges.
This commercial alliance will serve as a foundational pillar supporting the airport’s $4.5 billion international terminal expansion program. Projected works notably include five new widebody gates designed to sustain the aviation group’s long-term network growth plans.
Additionally, the agreement establishes a firm 15-year commitment to deliver the airport’s third runway, with its official opening scheduled for 2031.
Transforming Ground Infrastructure and the Passenger Experience
The project encompasses a comprehensive modernization of passenger flow and airside lounge areas within the terminal:
- New International VIP Lounge: Qantas is currently designing a new facility built on an upper level above Terminal 2, offering panoramic views of the airfield. This lounge will increase its floor space by up to one-third (33%) compared to the existing space to absorb growing demand from premium travelers and frequent flyer members. Construction and fit-out works are slated for completion in 2029.
- Passenger and Baggage Processing: Accelerated check-in areas and premium check-in zones will be deployed, complemented by automated bag drops integrated into the recently commissioned state-of-the-art baggage handling system and early bag store facility.
- International Arrivals Area: Australia’s premier 24-hour gateway will expand its baggage claim hall and increase operational floor space dedicated to Australian Border Force (ABF) inspections.
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“This will unlock growth for both Qantas and Melbourne Airport, improving the travel experience for millions of our customers every year. From check-in to our lounge experience and the new fleet, we are investing across our entire business to transform how customers travel to and from Melbourne. Basing some of our new A350-1000LRs in Melbourne will enable a range of new non-stop destinations that aren’t possible today.”
— Rob Marcolina, Qantas Group Chief Financial Officer (CFO)
“We are proud to be Australia’s largest 24-hour gateway and are delighted to partner with Qantas to deliver the most significant upgrade in Melbourne Airport’s history. Our investment in a third runway opening in 2031, alongside Qantas Group’s 15-year agreement supporting its execution, represents a massive vote of confidence in Melbourne.”
— Lorie Argus, Melbourne Airport Chief Executive Officer (CEO)
Both parties confirmed they will proceed with corporate processes to execute final commercial agreements in the coming months, formalizing the airport infrastructure roadmap for the state of Victoria.
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