Auckland International Airport [ASX:AIA] plans to launch the ‘single biggest redevelopment’ since 1966 — a multibillion-dollar investment that will extend its infrastructure, meet climate goals, and provide 2,000 additional jobs.
The redevelopment is already underway, with a brand-new domestic terminal to be integrated into the international terminal as part of the airport’s wider 10-year-capital program to bring both forms of travel under one roof for the first time since 1977.
AIA was trading around $8.20 at time of writing, having lifted 11% so far in 2023, and more than 3% over the past month alone:
Source: TradingView
Auckland Airport’s terminal replacement is underway
Auckland Airport has reaffirmed a decision first made in 2019 to commit to the integration of domestic and international travel.
In doing so, it moves the project to the final stages of design as part of its NZ$3.9 billion construction program.
This program is expected to take the next 5–6 years and is part of the airport’s wider 10-year-capital program to unite domestic and international travel.
Before COVID-19, a total of 9.6 million domestic passengers were passing through the airport every year — 62% of New Zealand domestic travellers — and 11.5 million international passengers would use the international terminal.
The integration program will also allow the airport to carry out key upgrades on the airfield to ensure the airport remains ‘resilient’.
In replacing the 57-year-old terminal, AIA said 2,000 construction jobs will be created.
Auckland Airport’s Chief Executive, Carrie Hurihanganui, stated:
‘This is all about building the gateway Auckland and New Zealand need.
‘A new domestic terminal integrated into the international terminal will make Auckland Airport fit for the future, providing a much-improved experience for travellers — something they’ve clearly and repeatedly told us they want.
‘It will make travel easier and faster, cutting domestic jet to international transfer times to a five-minute indoor walk.
‘Smart baggage systems will save time and reduce stress at either end of a flight.
‘We will also provide new gates and other facilities to help airlines smooth and speed-up turn-around times.’
Set to open between 2028 and 2029, the combined terminal will serve the larger and more efficient domestic jet aircraft flying to and from Auckland to New Zealand’s other main centres.
The new terminal will provide modern spaces, efficient passenger processing areas, improved facilities, faster baggage systems, better connections to the city, and special ground power units for aircraft, as well as electric charging for equipment, making for lower carbon alternatives.
In light of today’s high-cost environment, the company said it’ll be mindful about changes and ensure they are ‘fit for purpose’.
Ms Hurihanganui said:
‘Airports were built in the 1960s at the dawn of the jet age, and right across the world upgrades are taking place to better serve today’s modern traveller as well as the future of aviation.’
Auckland Airport is not alone in making such aeronautical investments.
According to Airports Council International (ACI), globally, around US$2.4 trillion needs to be spent on airport infrastructure over the next two decades, more than half of that needed in the Asia Pacific region.
ACI said that while new airports are being built, most investments will be modernising and enhancing existing airports as the new age of low-emissions travel dawns.
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