After opening the new T4 terminal in early December, Melbourne Airport is mulling more expansion. The new T4 terminal was opened by Treasurer Scott Morrison on Dec. 9 and will be used by Jetstar and Tigerair Australia.

Now the airport authorities are turning attention to improving Virgin Australia's domestic terminal and further expansion of the international terminal towards the domestic space occupied by Qantas.

“The Virgin pier improvement is the next cab off the rank for us," said chief executive Lyell Strambi.

Options for Virgin

“What we want to do is lay out a set of options for Virgin to really pick and choose from,” the CEO said. The options for upgrading Virgin's area could include reserving a dedicated area of T3 for premium customers and making use of the new T4 precinct for non-premium customers, as well as revamping the shops, reports The Age.

Virgin opened a new domestic terminal in Perth in November and chief executive John Borghetti ​ had said Melbourne terminal was the only major terminal in Australia that he was not happy with.

“Melbourne has been an issue for a long time,” he said.

Strambi said the number of international flights to Melbourne Airport has been growing at a rapid pace, with annualised growth rate hitting 10.2 percent in October, which is double the rate of Sydney Airport's 5.1 per cent growth.

“Victoria as a tourist destination is really doing well – surprisingly well,” Strambi said adding that more and more origin markets have come online, mainly from China, creating new demand for Australia.

To tackle the ongoing growth in domestic and international capacity, Melbourne airport is undertaking the development of a third runway to be opened by 2023. Strambi said it would be important to ensure that it was properly timed.

Strambi said Melbourne airport would ultimately accommodate two sets of parallel runways and become the biggest airport in Australia at some stage because Sydney's traffic would be split between Kingsford-Smith and a planned airport at Badgerys Creek.

Singapore Airlines CEO

Meanwhile, Singapore Airlines chief executive Goh Choon Phong stepped down from the Virgin Australia board in favour of his alternate. With this, Air New Zealand's Christopher Luxon is the lone chief executive representative among the carrier's three airline shareholders, reports The Sydney Morning Herald. Goh will be replaced on the board by Marvin Tan, Singapore Airlines's senior vice president, cabin crew.

Goh, Luxon and Etihad Airways chief executive James Hogan had all joined the Virgin board after invitations were extended to participate in the $350 million capital raising in 2013.

Air NZ is Virgin's largest shareholder with a 25.9 per cent stake, followed by Etihad with 25.1 per cent and Singapore Airlines with 22.2 per cent.

A Singapore Airlines spokesman said Goh had to quit the Virgin board due to other commitments. His exit comes as Singapore Airlines bought the shares in Tigerair Singapore and is looking to strengthen ties between the low-cost carrier and long-haul budget arm Scoot.

The Singapore Airlines also signed a wide-ranging partnership deal with Germany's Lufthansa Group for starting flights between Singapore and Europe.

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