Newcastle Airport sign deal with Australian government to upgrade airport with AU$250 million

Newcastle Airport, Australia, (NTL) has signed an agreement with the government’s tourism and events agency Destination NSW. The deal is a Memorandum of Understanding (MOU) to help the airport secure new international and domestic routes. Minister for Jobs and Tourism, John Graham, said: “This agreement puts Newcastle Airport on the runway for international success. The international terminal upgrade at Newcastle Airport will be a massive boost for tourism in the Hunter and Mid-North Coast. It will also cement NSW as the number one gateway to Australia.”

What is in the deal?

NTL will get an AU$250m upgrade, with a new runway, underground baggage-handling tunnels, along an electrical substation that will be connected to solar panels.

The agreement also allows NTL to financial support from the Aviation Attraction Fund for a two-year period from when the new routes commence.

The Aviation Attraction Fund could be used for activities including:

• Route subsidies/incentives – Incentivise targeted airline routes (new and existing) to deliver extra services and passengers through offering support such as passenger service charge discounts.
• Strategic marketing support and other demand-generation incentives
• Establishment / re-establishment costs – for airlines to establish or re-establish a presence and operations in NSW by subsidies offered including office accommodation and relocation payments.

What effect will this deal bring?

The upgrade is projected to increase annual visitor numbers by 850,000 each year and inject AU$6.2 billion into the visitor economy, generate AU$6.5 billion in gross regional product through freight and generate 4400 jobs over 20 years.

Newcastle Airport CEO, Dr. Peter Cock, noted that:  

“Our region will have access to an upgraded airport terminal by mid-2025, this will not only enhance the experience for all domestic travellers but also provide significant upgrades to our international capacity. So, it’s fantastic to have the support of the NSW Government to promote the region and attract new airline services to meet the region’s current appetite for both domestic and international travel.

“Local import and export businesses haven’t been forgotten. Our plans for an Aerospace East Precinct and air freight facility will also contribute AU$12.7bn to the regional NSW economy and increase the success of international air routes by providing airlines with the ability to supplement passenger revenue with cargo revenue.” AU$6.2bn in extra income for the visitor economy, and AU$6.5bn in additional freight activity over the next 20 years.