Melbourne Airport having a multi-million-dollar terminal redevelopment?

Melbourne Airport is reportedly working on plans for a multi-million-dollar terminal redevelopment.

The new project, the Australian newspaper says, would serve to boost growth plans by low-cost carriers Jetstar and Tiger Airways.

While the airlines refused comment, the Australian says it understands that the airport’s owner, Australia Pacific Airports Corp, is in talks with the two carriers about setting up a new “T5” low-cost terminal facility at the airport’s southern end.

Jetstar could thus move out of its current facilities in the main terminal building (which it currently shares with parent Qantas) and move to the new low-cost facility.

The move would serve to make more space available in the main terminal building, which could be used for retail.

Tiger’s terminal at the airport is basic but efficient, with a café converted from a shipping container outside it. The airline also bases two aircraft at Avalon Airport, near Geelong, to service seven new routes. Tiger Australia managing director Crawford Rix has warned that Tiger needs to grow at Melbourne Airport. If not, the airline could simply move elsewhere.

(Source: Peter Needham, eGlobaltravelmedia.com.au March 2011)