Photo: RNZ/Nick Monro
Auckland Airport will partner with Hawkins on construction of new domestic jet terminal, expected to create up to 2,500 jobs at the peak of the overall $2.2 billion terminal redevelopment.
The airport intends to raise $1.4 billion through a share issue to cover some of the projected costs and will also increase charges for airlines, which has been criticisedthe airline companies.
Auckland Airport said the terminal integration programme would be an economic engine for New Zealand creating 2500 jobs at peak and supporting many thousands more employment and business opportunities in South Auckland.
The overall development, with baggage handling and airfield developments, will cost $2.2b.
Downer Group subsidiary Hawkins would manage the construction and delivery of the domestic jet terminal building for about $800 million.
Auckland Airport chief executive Carrie Hurihanganui said the domestic jet terminal building was the most significant element in the ongoing upgrade.
"It's investment for the coming decades and beyond, creating essential resilience, greater capacity, improved processing for domestic jet travellers and their baggage, and a greater experience for everyone who travels, visits, and works in our aviation precinct," she said.
"It will also create a boost for the economy, creating a strong pipeline of work for the construction industry, generating thousands of jobs, and an upturn in activity to benefit suppliers and New Zealand's subcontracting workforce."
Redevelopment work began in 2022 and all the key projects were under way, with more than 23 percent of the infrastructure programme completed.
This next major phase involved expanding the international terminal further to the east, to construct the new domestic jet terminal building.
It was expected to take five years to complete construction, followed by operational testing, with a public opening in 2029.
The facility would feature a new headhouse (a concourse for ticketing, baggage and offices), and a 240m-long gate pier, with 44 percent more processing space for passengers and 26 percent more airline seat capacity, along with a 10 percent increase in flexible seat capacity provided through bus lounge operations.
There would be a short indoor walk between domestic jet services and international flights, which currently requires taking a bus or using a 950m outdoor walkway.
Hurihanganui said the new domestic jet terminal would be the first new terminal at Auckland Airport in almost 50 years and followed years of consultation with major airline customers.
"Building in a live operating airport environment is no small task, and while we're focused on minimising the impact on travellers as much as possible, we know change is disruptive and we thank travellers for their patience as the build progresses," she said.
Details of $1.4 billion equity raise:
- It would be made up of an underwritten placement of $1.2b, or about 172.7 million new ordinary shares, issued at $6.95 each.
- The share price represented a 7 percent discount to the last close price on 13 September 2024.
- A trading halt was granted by NZX and requested from ASX to facilitate the placement of nearly 12 percent of shares, with a non-underwritten retail offer to raise up to $200m.
- Auckland Airport's existing New Zealand eligible shareholders can subscribe for up to $150,000 worth of shares. Eligible Australian shareholders can subscribe for up to A$45,500.
- Auckland Airport has discretion to scale applications or accept over subscriptions.
- The domestic jet terminal project is part of a wider $6.6b planned aeronautical capital investment programme.