Melbourne airport runway project cleared for takeoff

The long-awaited move is set to bring Melbourne Airport in line with Sydney and other major international airports but the project is expected to open a year later than originally planned.

Melbourne Airport’s third runway has been given the green light for lift-off in a long-awaited move that will unlock billions of dollars for the economy, reduce flight delays and increase competition.

But the 19-month approval process means the $3bn project is now expected to open in 2031 – a year after it was due to be completed.

Federal Transport Minister Catherine King signed off on the major development plan with strict conditions on Thursday, saying the noise concerns from locals had been front of mind.

In a win for affected communities, Melbourne Airport will be required to extend the length of its east-west runway to ensure no single neighbouring area bears the brunt of the airport’s growth.

The third runway at Melbourne Airport is expected to open in 2031.

“This new runway will allow Melbourne Airport to cater for the demand of a growing city, providing better access for freight and passengers and driving economic growth for years to come,” Ms King said.

“Melbourne’s third runway will bring it in line with Sydney and other globally-competitive airports.

“But these conditions, along with relevant environmental requirements, mean that we are balancing the growth of the airport with the needs of the communities on the ground.”

The 3000m runway will be built parallel to the west of the airport’s existing north-south runway, enabling for simultaneous takeoffs and landings that will reduce delays and increase opportunities for new airlines.

Federal Transport Minister Catherine King says the new runway will allow Melbourne Airport to cater for the demand of a growing city. Picture: Gaye Gerard

The airport will also be required to develop a noise sharing plan in consultation with locals and conduct a health study into the impacts of noise before and for the first 20 years after the establishment of the third runway.

Premier Jacinta Allan on Friday welcomed the upgrade, but wouldn’t be drawn on whether a curfew would be enacted to control the hours planes could fly, saying: “that’s not a question for me”.

“That’s a consideration that for the Federal Government,” she told ABC radio.

“Melbourne is a curfew-free airport right now and that provides us, as a city and a state, with a great strategic advantage.”

Melbourne Airport chief executive Lorie Argus also applauded the decision, saying the new runway would benefit Australian travellers and exporters for decades to come.

“The runway project will secure 51,000 jobs in Victoria’s tourism, agriculture, education and other export industries, and will help add an additional $6bn a year to the state economy,” Mrs Argus said.

“Australia’s vast distances and Melbourne’s position on the globe mean demand for air access will continue to grow as our population increases.

The runway project will secure 51,000 jobs in Victoria’s tourism, agriculture, education and other export industries.

“Sydney and Brisbane already operate parallel runway systems, so this will ensure that Melbourne does not become a handbrake on the national air network or the national economy.”

Treasurer Tim Pallas welcomed the extra cash from the federal government, revealing he had feared the funding may have been spent elsewhere.

“Had we lost this opportunity to develop the third runway, I was fearing that the Commonwealth’s attention would have moved to other jurisdictions that are looking for runway expansions as well,” he said.

“And Victoria could ill afford it.”

He said it was “vitally important” that Melbourne Airport keeps its curfew free status, saying it was a “critical advantage” over Sydney.

It comes as the long-awaited airport rail project sits in limbo as Melbourne Airport demands compensation from either the state or federal government.

Mr Pallas said he had met with Ms Argus last week and had ruled out handing over any compensation to the airport for the rail link for expected land devaluation.

“I would make the point that the state’s position is and remains that we will be paying no compensation to enhance the airport with what will be a multibillion piece of infrastructure,” he said.

Detailed design work is expected to begin before the end of this year with early works to start in 2025.

The runway is expected to take five years to complete before opening in 2031.

Ms King has been accused of sitting on the decision, with the Herald Sun this week revealing the business and tourism sectors were urging Ms King to urgently approve the project.

“The third runway is absolutely crucial to support not just the growth demand, but the current demand for visitation in Victoria,” Victorian Tourism Industry Council chief Felicia Mariani said.

Melbourne Airport’s major development plan was submitted to the federal government in February 2023.

It first went through environmental approvals before the report was given to Ms King in September last year.