Auckland Airport plans to start construction of a new domestic terminal, but airlines warn of higher airfares

Friday, 17 March 2023

Auckland airport will soon start construction of a new domestic jet terminal that will be integrated with the existing international terminal.

Auckland Airport says will begin construction of a new domestic jet terminal that will be integrated with the current international terminal.

Chairperson Patrick Strange said it would be the biggest redevelopment since the airport opened in 1966 and cost about $3.9 billion over the next five to six years when the new terminal was expected to open.

It was a major investment for airport, he said.

“The domestic terminal is almost 60 years old and needs replacing. It’s nearing capacity and it’s no longer fit for purpose and hasn’t been for some time. If it wasn’t for the pandemic, we would already be well underway with its replacement,” he said.

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But airlines said they are surprised and disappointed by airport’s announcement that it will go ahead with the project.

Cath O’Brien, executive director of the Board of Airline Representatives said the development would “ultimately make it too expensive for some people to fly”.

“This $3.9b spend gets pushed on to airlines in fees that end up in ticket prices,” O’Brien said. “Airlines are frustrated by the airport’s action.”

Auckland International Airport chief executive Carrie Hurihanganui.

Strange said the airport had been in discussions airline since May 2011 to build an integrated terminal. Over that time 21 concept designs have been developed.

The new terminal meant the gateway airport was resilient and sustainable, supporting airline ambitions for a low-carbon future and strengthening infrastructure to cope with increasingly severe weather events due to climate change, he said.

Chief executive Carrie Hurihanganui said the airport would begin to recover the cost of building the infrastructure once it was commissioned and airlines and travellers were using the new facilities, she said.

“We believe the value in creating the resilient gateway that Auckland and New Zealand need is worth the money invested.

“Kicking infrastructure investment down the road would not be in New Zealand’s best interests. History shows it will not get any easier or cheaper,” she said.

The board on Friday gave approval for the project to move into the final stages of design. the project included the $2.2b combined terminal plus a number of other associated projects.

The development would bring domestic travel and international travel together under the same roof for the first time since 1977 via an expansion at the eastern end of the existing international terminal building, Strange said.

It was part of the airport’s wider 10-year-capital programme, which included upgrades to the airfield.

“This is all about building the gateway Auckland and New Zealand need,” Hurihanganui said.

“A new domestic terminal integrated into the international terminal will make Auckland Airport fit for the future, providing a much-improved experience for travellers.”

The new terminal would have efficient passenger processing areas, improved bathroom facilities and faster baggage systems, as well as better connections between domestic and international travel, she said.

It would take about five minutes to walk indoor from the domestic terminal to the international terminal.

“A new check-in experience will provide state-of-the-art facilities for both domestic and international travellers, including the ability to check in and store your bag at any time throughout the day,” Hurihanganui said.

Pre-covid 9.6 million domestic passengers travelled through the domestic terminal each year, while 11.5 million international passengers, including those in transit, passed through the international terminal.

The new combined terminal would add floor space across two levels to the existing international terminal building, with the wider integration programme including significant upgrades to airfield pavement, underlying utilities, and employing 2000 people at the height of construction, she said.

Regional turboprop flights would remain in the existing domestic terminal, pending consultation with airlines.

While the new combined terminal is under construction, domestic travel will continue to operate from the existing domestic terminal, which would be upgraded and renovated, including bathrooms, helpdesks and dwell spaces, she said.