FACILITIES at Townsville Airport will be upgraded after the Federal Government agreed to loan $50 million toward the project.
The funding, which has been loaned to Queensland Airports Limited under the Northern Australia Infrastructure Facility, will kick start the long planned $80 million upgrade.
The redevelopment will include a substantial terminal refurbishment, better road access and an upgrade to all core infrastructure.
It comes after apron works were completed last year.
QAL CEO Chris Mills said all airlines would be required to pay their 'fair share' of the upgrading works and negotiations were continuing with Qantas.
However, the airline has long balked at the idea of increasing passenger fares to pay for any refurbishment of Townsville Airport.
“The redevelopment has been in the pipeline for several years and the NAIF loan looks set to unlock this opportunity for Townsville and North Queensland," Mr Mills said.
“This paves the way for us to move ahead with this important project, which will address capacity issues for Australia’s 11th busiest airport."
Townsville Airport CEO Kevin Gill said the terminal upgrade was overdue and the redevelopment would deliver an airport the community needed and deserved.
“The Townsville Airport terminal was last upgraded in 2003.There is strong support from the community for this project, which has been verified by international planning experts,” Mr Gill said.
“Given the impact of the flood, news of this project comes at the right time for Townsville.”
Minister Northern Australia Matt Canavan said local jobs, extra flights and greater tourism activity was likely to flow from the project.
“As the largest city in Northern Australia, Townsville is the gateway for many who travel to Northern Australia," Mr Canavan said.
“Townsville deserves a world-class airport to make an impression on visitors and this investment will help achieve that."
Dawson MP George Christensen 200 full time equivalent jobs would be supported during construction and another 50 operational jobs once the project is complete.
"Townsville Airport already supports more than 3,000 jobs and contributes $420 million to the economy, and it is a vital transport hub for North Queensland," Mr Christensen said.
“The last significant terminal upgrade occurred in 2003 and since then the airport’s passenger movements have grown by more than 80 per cent. To generate maximum economic benefits in North Queensland, this airport needs to grow and respond quickly to the opportunities from increasing air travel and tourism."
The funds have been allocated to the upgrade despite Townsville Airport losing all commercial international flights in the last 12 months, with Jetstar pulling return flights to Bali in March, siting lack of demand and profitability.
Air Niugini also ceased direct flights from Townsville to Port Moresby in PNG in 2018, while Tigerair pulled direct flights to Melbourne last year and no longer operate out of the city.
