Sydney Airport is proposing a major overhaul that would see terminals divided by what airline passengers are flying with rather than where they are travelling.
Under the plan, the domestic terminals would accommodate Qantas, its international partners and Jetstar, and the 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.