Big expansion plans for Newcastle Airport in Australia

Newcastle Airport in Australia is embarking on a significant expansion plan, in partnership with Commonwealth Bank (CBA), which is acting as sole financier.

The A$240 million deal includes the expansion of Newcastle Airport to enhance domestic capacity and develop a new international terminal and finance to accelerate the activation of Astra Aerolab including the construction of commercial A-grade office and industrial facilities subject to current development applications.

According to Paul Fowler, the executive general manager of regional and agribusiness banking at the Commonwealth Bank, Newcastle Airport is strategically important infrastructure and a key driver of the regional economy.

He said: “The airport’s expansion and modernisation will significantly increase its capacity and improve connectivity across Newcastle, the Hunter Valley and the Central Coast, driving new business and employment opportunities that add to the region’s prosperity.”

Newcastle Airport CFO, Allanna Ryan, said the deal with CBA was a major step forward in enabling its promise to be the airport the region deserves.

“The biggest beneficiaries of the airport’s upgrade will be the people of the Hunter region. We are delighted to partner with CBA on this critical development to support the growth and sustainability of our region.”

While airport CEO, Dr Peter Cock, noted: “Driving greater economic and social benefits by broadening our domestic and international destinations and contributing to Newcastle’s transformation from a major regional hub into an international destination and a significant second international gateway to NSW, is key to our purpose.

“We also thank the Federal Government for investing a total of $121 million in our region’s international growth.

“Servicing Defence and defence industry participants are both vital to Australia and benefits the regional economy. Astra Aerolab has strong leasing interest and a number of buildings poised to start coming out of the ground. CBA’s funding partnership will help us accelerate this activity to meet client demands.”

Dr Cock said Newcastle Airport was committed to reducing its environmental footprint across the airport, with the expanded terminal building being designed and to be operated with 5-star Green Star rating accreditation.

Meanwhile, the under construction solar powered covered car park powering more than 30% of the airport and with the first Astra Aerolab commercial office building also being successful in attaining a 5-star Green Star rating accreditation.

The second busiest airport in NSW, Newcastle Airport generates around $1.2 billion in economic activity a year and supports around 5600 jobs. It currently services 12 domestic routes with six domestic airlines, catering for around 1.3 million passengers a year.

The airport is confident that its expansion will facilitate the introduction of new domestic and international routes and address capacity for forecast growth to around 2.3 million passengers a year by fiscal 2028.