Qantas to Trim Debt With A$802 Million Sydney Land Sale

By Stuart Condie

SYDNEY--Qantas Airways Ltd. agreed to sell land around Sydney Airport to a consortium for 802 million Australian dollars (US$594.8 million) and said it may offload more.

The Australian carrier on Friday said it had entered into binding agreements with a consortium led by LOGOS Property Group for the sale of 34 acres in the Sydney suburb of Mascot, where the city's airport is located.

Qantas said it expected to settle the transfer of a vast majority of lots in the first half of its current fiscal year, and would use the funds to reduce debt and accelerate its recovery from the Covid-19 pandemic.

The airline's domestic and international operations have been severely curtailed by national and internal border closures, moving it to furlough staff and cut costs.

Qantas said it was considering other sale and development proposals by LOGOS, which could raise the total value of the deal to more than A$1 billion. It said it expected to complete an evaluation early in the 2022 calendar year.

Write to Stuart Condie at [email protected]