MELBOURNE AIRPORT: To expand International Terminal to accommodate passenger growth

Melbourne Airport plans to expand its international terminal. The expansion will give the airport greater capacity and improve passengers’ experience. The airport has already spent a year consulting with its client airlines.

Record International Passenger Traffic

December 2024 saw a history-making 1,147,533 international passengers use the airport, the highest monthly figure on record. This is not surprising given that international seat capacity has reached 113% of pre-pandemic levels. That increase has put pressure on the terminals’ current infrastructure.

Most of Melbourne Airport’s aircraft clients are foreign carriers, accounting for 72% of seat capacity. Those airlines want better facilities, and Melbourne Airport is moving to provide them.

Infrastructure upgrades at Melbourne Airport

AU$500 is being spent on an upgrade to the baggage system. The airport is midway through this first step in the terminal improvement. The new system is ‘tote’ ot tray-based, which allows a bag to be tracked throughout the system in its own tray. The system will also allow early bag storage, supporting any time check-in.

With increased passengers in December came a record number of outbound bags to be processed.

There are other upgrades planned to help with peak-time congestion including larger areas for check-in and baggage claim.

“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.”

Lorie Argus, Melbourne Airport CEO

The creation of a satellite international terminal and up to five new gates for widebody aircraft is under discussion. This would also provide more space for lounges, waiting areas and the inevitable shopping centre like retail areas.

However, these developments are contingent on the completion of the elevated road network by 2026.

Third runway for Melbourne Airport

Melbourne also wants to go ahead with a controversial third runway. The plans for an additional runway have been around for years, but of course, Melbourne has started encroaching on the airport, and not all those who occupy surrounding space, or are affected by aircraft noise from the proposed extra runway are happy about the proposal. Even Qantas has some qualms.

“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.”

Lorie Argus, Melbourne Airport CEO

But don’t expect a railway link to be part of the plan to be finalised this year, although it may remain as part of longer term plans. The Victorian Government has overspent grossly on infrastructure, and it looks like the rail link and its above ground station won’t arrive until 2030 when the third runway is also scheduled to commence operations.

2PAXfly Takeout

Melbourne’s Tullamarine Airport last expanded in 2011, when the international terminal was upgraded, including five gates and 41,000 square metres of additional space.

If only the airport were willing to pony up the cash for putting the rail link underground and integrate it into the terminal instead of forcing passengers to schlep their luggage above ground to the terminal, Melbourne might get the modern terminal it deserves.