Melbourne Airport has announced major plans to expand its international terminal to cater to increased passenger demand after a record-breaking December.
Last month, the airport welcomed more than 1.1 million inbound passengers, with international seat capacity at an all-time high, reaching 113 per cent of pre-pandemic levels.
An artist’s impression of Melbourne Airport’s proposed expansion.Credit: Melbourne Aiport
Melbourne Airport chief executive officer Lorie Argus estimated the scope of the expansion would cost around $4.5 billion and confirmed talks with major airlines including Qantas and Virgin Australia had been ongoing over the past year.
Argus said plans were being developed in response to increasing passenger demand, with the existing international terminal often requiring bussing during peak periods.
“We’re setting new records for international passenger numbers and as Melbourne’s population grows, it’s important that our infrastructure grows too,” she said.
“During peak periods we are already experiencing regular congestion in the international arrivals area, so it’s obvious to us that our passengers and airlines need more space.”
Argus acknowledged the airport’s capital expenditure program would increase airport charges for passengers.
“Our international passenger charge today is $26. That’s forecast to go to about $34 next year, and that grows over time,” she said. “But it is based on the capital plan that’s ultimately agreed by the airlines.”
There are already several major development plans in place for Melbourne Airport, which operates 24 hours a day.
The Albanese government greenlit a $3 billion development plan for a third runway at Melbourne Airport in September last year. The airport hopes to have the additional runway completed by 2031 to cope with rising passenger numbers, which are forecast to double to 83 million a year by 2046.
Melbourne Airport is also midway through a $500 million project to replace the international baggage system with a tote-based process, allowing for any-time check in and early bag storage.
Argus said the baggage system upgrade was the “first step of an ambitious expansion” of the international terminal.
“More gates, more aircraft parking stands, more check-in space, and a larger baggage reclaim hall, combined with construction of Melbourne Airport’s third runway, would allow airlines to add more flights during peak times, which would give consumers and Victorian exporters more choice,” she said.
“We hope to have plans formalised by the middle of this year so that we can start work as soon as the enabling infrastructure projects are completed.”
Melbourne Airport’s international terminal was previously expanded in 2011, with the addition of five new gates and 41,000 square metres of extra space.
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