Major structural and operational overhauls planned at Sydney Airport stand to deliver much needed cash to Qantas Airways, analysts said, as the airline is set to negotiate for the possible termination of its lease contracts at the terminal premises.

As much as $350 million would be collected by Qantas management if the leases were ended abruptly but Macquarie Equities analyst Ian Myles warned that the benefits would be enjoyed by the company only in short term.

While almost immediately, Myles told Business Day, Qantas will witness operational savings boost in the near term, in the end the airline will have to fork out annual fees in order to continue using the facilities of the airport.

That, over the long term, should translate to higher expenditures for Qantas, Myles said.

If talks between Qantas and Sydney Airport management reach a new deal, the two will scrap leases covering for the usage of terminals T2 and T3, which are set to expire by 2020.

Under the new concept presented by the MAp Group, the entity managing the airport's operations, Qantas will be lumped with other international carriers in conducting their operations on the present domestic terminals.

The MAp Group also planned to construct an engineering complex, which it said will be made available to Qantas for its maintenance works.

Another hangar has also been proposed for construction, which will house the maintenance routines of Virgin Australia, apart from it being given exclusive access to the current international process where the airline will process its passengers' activities.

The major facelift, media reports, said would require at least $1 billion but would boost Sydney Airport's capacity and profitability.

Among the benefits, according to Business Day, is the projected jump in passenger traffic, increased occupancy on the terminals' car parks, reductions of operational disruptions, improvement of planes' turnaround times and the concentration of aircrafts to their respective terminals that in turn would decrease major logistic concerns.

However, the published cost of the airport's development, set to be completed over the next five years, is mostly speculative, according to MAp Group chief executive Kerrie Mather, who added that the plan is still in the concept stage.