Australian carrier, Virgin Australia has become the first airlines in the country to tie up with the Brisbane Airport Corporation to support the development of a new runway at the airport.

The agreement spanning a decade will guarantee runway access to Virgin as well as upgrades to the domestic terminal for supporting fly-in, fly-out operations. The airline will also be able to operate A330 aircraft. BAC chief executive officer Julieanne Alroe described the deal between the two companies as a significant milestone for the airport.

"The agreement proves the commitment of both BAC and Virgin Australia to the growth of aviation services in Brisbane, Queensland and Australia. BAC is committed to building Brisbane's new runway. The project is on track and on schedule and our investment so far, along with today's announcement, demonstrates this commitment and is an important step forward," Ms Alroe said.

Virgin Australia head John Borghetti ahd recently complained about the delays at the airport saying that the lack of improvements in infrastructure could affect tourism. Chief Financial Officer Sankar Narayan said that the agreement is in the best interest of Virgin's customers, shareholders and the state of Queensland.