POINT HACKS EXCLUSIVE | Melbourne Airport’s international lounge precinct is set for an overhaul. As part of expansion works at Terminal 2, the ‘dungeon’, as it’s become known among many frequent flyers, will close. Instead, lounge operators could move into nicer real estate on the upper levels, with floor to ceiling windows.

The change won’t happen overnight. In fact, it’ll be some years away, as the arrivals floor of the terminal is expanded, consuming the space currently occupied by many of those lounges. It’s known as the dungeon because the lounges down here generally lack outside-facing windows. There can be glimpses of natural light, but the views provided are usually just of arriving international travellers marching past on their way to passport control.

To learn more about the airport’s long-term plans, I catch up with Melbourne Airport’s Chief of Aviation, Jim Parashos. We’re both in Cairns for the CAPA Airline Leader Summit.

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Which lounges are currently in the Melbourne Airport ‘dungeon’?

Melbourne Airport has six lounges tucked below decks in Terminal 2. Most are on the same floor as used by arriving passengers; albeit, with departing and arriving travellers kept apart. One lounge – operated by Air New Zealand – is down on the ground floor. Unlike the rest, this location affords some tarmac views and natural light.

But these five lounges beneath the concourse have no direct exterior views, collectively sharing the space nicknamed the ‘dungeon’:

Parashos explains that of the works planned for the terminal, “the most significant infrastructure – and of course, probably the most sought after from our airline customers – is an expansion of that central satellite area. (This) will provide more seating and circulation to the new gates. But the idea is that the level above departures will become the home of an expanded gate lounge area.”

“I think it’s fair to say all our (existing) airline customers would like to move up there over time. But we are also exploring some shorter-term opportunities where they do exist. They’re very limited, but we are hoping by the end of the year to … identify one or two additional lounge spaces, until the terminal is fully expanded.”

Speaking of floor space below decks, Parashos adds, “we’re looking to push the arrivals hall out to expand both the length of our reclaims and to add additional reclaim and circulation space. And that of course provides additional check-in capacity upstairs, which is really great for us.”

When will airlines make the move?

It’ll be some time before there are enough new spaces for airlines to move into. But “over time when the full terminal is expanded, two things will happen. That space in that core area, which is sort of departure surrounded by arrivals, will need to be expanded into an arrivals area for our concourse.” That’s largely the current ‘lounge dungeon’.

“So it’ll make sense to take some of that lounge capacity out. But I think there are better ways we can utilise that space down there other than lounges, even if it’s used as departure space accessed from upstairs.” Asked about a timeline, Parashos hints at “six to seven years.”

“Certainly, based on discussions that we’ve had with our existing airline partners, airside views and floor-to-ceiling windows are really important to them. So we’ll work with them on that.”

The plans come as part of broader works to add more gates to the terminal, and a third runway to the airport. For the international terminal alone, “we’re looking at (adding) eight narrowbody or five widebody gates,” shares Parashos. But when it comes to the ‘dungeon’, the aviation boss confirms that the works will see it closed for good. “Most definitely, most definitely.” There we have it.

Also read: Qantas Business breakfast express: taking the day’s first flight to Sydney

Featured image courtesy of Josh Sorenson/Pexels.


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Melbourne Airport plans to close its infamous ‘lounge dungeon’ was last modified: September 2nd, 2025 by Chris Chamberlin