Melbourne Airport awaits federal government’s approval for third runway

Melbourne Airport has been waiting for the federal government to sign off on its third runway project, with the transport minister accused of sitting on the decision for 18 months.

Melbourne Airport’s proposed third runway is in limbo, with federal Transport Minister Catherine King accused of sitting on a decision about the project’s future.

Victoria’s business and tourism industry are calling on Ms King to urgently green light the $3bn expansion, which will take five years to complete, as passengers face more delays and high fares because the airport is nearing capacity.

Concerns have been raised about the noise for residents north and south of the runway, as well as the impact on threatened species in the area.

But peak bodies say the runway is critical to increasing desperately-needed competition in the aviation sector and retaining Melbourne’s edge over Sydney, which already has three runways.

Crowds and cafes at terminal 4 Melbourne Airport. Picture: Jason Edwards

Victorian Chamber of Commerce and Industry Chief Executive Paul Guerra warned that the opening of Western Sydney Airport in 2026 would have a “negative impact” on Victoria’s trade, if the runway was not approved.

Mr Guerra said Melbourne Airport needed to retain its status as Australia’s “busiest, curfew-free airport”, and keep pace as population, business, trade and tourism grows.

“We believe both the federal and state governments need to provide approval with urgency to ensure the third runway can be operational in the near term to service Victoria’s growth ambition,” he said.

Under Melbourne Airport’s third runway proposal, flights in and out of Melbourne will be significantly changed to send more planes over the suburbs north and south of Tullamarine. Picture: Supplied

Victorian Tourism Industry Council chief executive Felicia Mariani said Melbourne airport was already operating at capacity during peak periods.

Ms Mariani said it would be “incredibly disappointing” if NSW was able to service more passengers with four runways at their disposal, while Victoria’s potential was stymied because it only had three runways, including Avalon Airport, servicing the state.

Most of the extra $16bn in tourism growth projected in Victoria over the next five years would be driven by international visitors, she said.

“The third runway is absolutely crucial to support not just the growth demand, but the current demand for visitation in Victoria,” Ms Mariani said.

“With the release of the aviation white paper, there is an acknowledgment that growth and competition is good for our country.

“The federal minister has the opportunity right now to really stamp her ownership on this aspiration, and in working with Melbourne Airport, can ensure that Victoria has the ability to stretch and grow.”

Transport Minister Catherine King at the Western Sydney International Airport. Picture: Gaye Gerard

Ms King said the decision about Melbourne Airport’s third runway was “before her”.

But opposition transport spokeswoman Bridget McKenzie claimed the application had been sitting on Ms King’s desk for 18 months.

“One way to put downward pressure on airfares is to increase runway capacity that would enable more competition at our major airports,” Senator McKenzie said.

“At this rate, given projected travellers, Melbourne Airport will be needing a fourth runway and no decision will have been made.”

In July, Melbourne Airport chief executive Lorie Argus said the runway did not require a cent of taxpayer dollars, would secure almost $6bn annually to the Victorian economy and 51,000 jobs.

“The third runway project will allow for the growth of our existing airlines as well as attracting new carriers,” Mrs Argus said.

“There will be fewer delays, with an additional runway and more flight options for travellers, putting downward pressure on airfares.”