Newcastle Airport's bid for international flights will go to new heights after the state government agreeing to kick in millions of dollars to entice airlines to open up new routes.
The destinations are still being negotiated with multiple carriers, but the airport has declared its intention of securing an overseas destination in time for the mid-2025 opening of its $250-million international terminal.
The government's tourism agency Destination NSW has signed a Memorandum of Understanding (MOU) with Newcastle Airport to help it get agreements with airlines for new routes.
The Aviation Attraction Fund package includes route incentives for airlines and strategic marketing support, and will run for a two-year period from when the new routes commence.
The Newcastle Herald understands destinations under consideration include New Zealand, Bali, Singapore and the Pacific Islands. The airport also wants to complete its domestic connectivity with routes to Perth and Hobart.
NSW Jobs and Tourism Minister John Graham said the funding would give the airport financial certainty to attract new international and domestic routes.
"This agreement puts Newcastle Airport on the runway for international success," Mr Graham said.
"The government is backing the people of Newcastle to maximise the opportunities of the international terminal upgrade."
Earlier this year, the Newcastle Herald revealed there was enough demand within the Hunter catchment to support daily flights to New Zealand and Singapore, three flights a day to Perth and weekly flights to a Pacific Islands destination such as Fiji.
The airport is currently in the middle of discussions with several airlines about the new routes.
Although the amount of government funding will remain commercial in confidence, Newcastle Airport chief executive Peter Cock said the support package was "critical to supporting our live negotiations".
"Newcastle Airport is on the cusp of becoming a true global gateway by mid-2025," Dr Cock said.
"We understand where people want to fly and we are working hard to confirm new routes with several key airline partners."
The international terminal upgrade is projected to increase annual visitor numbers by 850,000 each year, inject $6.2 billion into the visitor economy, generate $6.5 billion in gross regional product through freight and generate 4400 jobs over 20 years.
"The international terminal upgrade at Newcastle Airport will be a massive boost for tourism in the Hunter and Mid-North Coast," Mr Graham said.
"It will also cement NSW as the number one gateway to Australia."
Destination NSW chief executive Steve Cox said the government wanted to pass on the "holistic economic benefits" to the entire Hunter region, and would host workshops for businesses interested in tapping in to the influx of new visitors.
"We are working with the Hunter community to prepare for and maximise the once-in-a-generation opportunity that a new international terminal and infrastructure upgrades bring," Mr Cox said.
The business community has been lobbying for government aviation support for years.
In this year's pre-budget submission, Business Hunter called on the NSW government for an aviation action fund of $15 million over three years.
Business Hunter chief executive Bob Hawes was flying high to hear the Minns government had agreed to the support package.
"We're very confident that wherever this money is invested, it will bear fruit," Mr Hawes said.
"The size of the Newcastle Airport catchment is well over one million people and it is deserving of this sort of attention.
"I think the response from the local population, businesses and traveling public will prove the case and justify the investment."
Minister for the Hunter Yasmin Catley said the funding package would open a new gateway for domestic and international visitors to explore the Hunter and the Mid-North Coast.
"We're one step closer to showcasing the Hunter like never before, sending a strong message to overseas visitors," Ms Catley said.
"Newcastle is quickly growing and establishing itself as one of the state's most desirable destinations to live and visit. The Hunter region is a great place to live, work and play and we want everyone to experience it."
