Newcastle Airport to remain in community hands

Port Stephens and Newcastle Councils, each 50% owners of Newcastle Airport Limited (NAL), are set to retain the current ownership arrangement in a decision that will ensure the fastest growing airport in regional Australia remains a community asset.

On Tuesday, 9 March, both councils will consider recommendations to explore short to medium term options for facilitating investment from neighbouring Hunter Councils rather than introducing a private equity partner.

Speaking today, Port Stephens Mayor Bruce MacKenzie said the Joint Council Sub Committee, which prepared the report, had agreed on a strategic direction for the airport’s growth including anticipating flexible longer term funding opportunities.

“It is our belief that the primary function of Newcastle Airport is to be an economic driver for the Hunter Region,” he said.

“To help achieve this, Port Stephens and Newcastle councils will continue to provide the necessary funding for the airport’s growth for the foreseeable future. Both Councils rightly represent the community as part owners of the airport.”

“We will also investigate whether there is interest from other Hunter Councils in investing what is essentially a regional asset.”

“In this way, all surplus from the running of the airport will continue to be reinvested back into the facility.”

Based on the results of an independent route demand study, NAL has long term plans for the expansion of its terminal facilities to accommodate future growth as outlined in the study.

Also speaking today, Newcastle Lord Mayor John Tate said it was possible the airport could be servicing two million passengers per year by 2014.

“If we aim for moderate growth over the medium term and adopt the strategies outlined in the route demand study, the airport is likely to reach its current capacity within the next four years,” he said.

“One of the real constraints we have, however, is the fact that we are operating on a 40 year lease,” Cr Tate added.

“What we need to do is start negotiations with the Department of Defence to extend that lease significantly, which will, in turn, increase the value of the airport from an investment perspective.”

“In the meantime, our focus will remain on delivering a quality, low cost and equitable service to the Hunter Region as the airport grows and increases its passenger capacity.”

Already NAL is a major player in the local economy. In 2008, airport operations injected $283 million dollars into the regional economy and sustained 2,234 jobs.  Current expansion plans will significantly increase this impact.

Additionally, the money spent by visitors to the region equated to $150 million last year and generated almost 900 extra jobs.