Sydney Airport is proposing a major overhaul under which terminals would be divided by what airline passengers are flying with, rather than where they are travelling to.
Under the plan, the current domestic terminals would accommodate Qantas, its international partners and Jetstar, and the current international terminal would take Virgin Australia and other international airlines.
Sydney Airport chief executive Kerrie Mather said the changes would improve the airport's attractiveness as an international hub and deliver a better passenger experience.
"This initiative has the potential to transform aviation in NSW," she said in a statement today.
Connection times would be faster for passengers and aircraft turnaround times would be cut, Ms Mather said.
The proposal will be put to stakeholders such as the airlines, airport-related businesses, border agencies, regulatory authorities and local, state and federal governments.
It will be considered in the context of the airport's 2014 master-plan process, which is scheduled to begin in late 2013.
Qantas chief executive Alan Joyce said the plan responded to the challenges and opportunities facing Sydney Airport.
"The proposed new terminal precinct would have significant benefits for all passengers travelling with both Qantas and Jetstar," Mr Joyce said in the statement.
"As passenger numbers grow over the next decade, it is vital that airlines and airports work closely together to deliver a seamless travel experience.
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