The economic value of Melbourne Airport, and key projects to ensure its future success, have been outlined in the Melbourne Airport 2023 Economic and Social Impact Report.

A valued Melbourne Chamber member, Melbourne Airport has been Victoria’s gateway to the world for more than half a century, enjoying an enduring partnership with both industry and government, which has led the airport to become Australia’s busiest curfew-free hub for passengers and freight.

The broader airport precinct has similarly become a significant employment hub.

Key findings of the report include:

• An average daily international service is worth $154 million a year to the Victorian economy and supports 1,380 jobs.
• Melbourne Airport contributes $18 billion in Gross Value Added (GVA) to Victoria, making up more than 5 per cent of Australia’s GDP, with more than 18,000 direct jobs across the precinct, and 146,000 jobs supported across Victoria.
• Melbourne Airport moves high-value, time sensitive freight – in FY23 more than 205 million tonnes of airfreight worth almost $22 billion passed through the airport.
• Melbourne Airport has worked hard to attract international airlines back to Victoria, and we expect to be back at 100 per cent of pre-pandemic levels of capacity by December.

Airport future

The report says that as Melbourne becomes Australia’s most populous capital city and forecast passenger numbers continue to grow, Victoria needs an airport precinct that is fit for purpose.

The Aviation Green Paper presents an opportunity to pursue policy reform and grow Victoria’s economy by moving to an open skies approach to bilateral air service agreements to create more capacity and keep airfares affordable.

Melbourne Airport is also entering an exciting period of growth with one of its largest ever capital investment programs planned for the next decade.

The critical infrastructure projects proposed during the next decade include a new third runway, an airport rail link and improved road access to the terminals.

Melbourne Airport Chief Executive Lorie Argus said: “Together these projects and associated terminal developments will transform the precinct and support our vision to be Australia’s favourite airport destination.”

Delivering these critical infrastructure projects however, is not guaranteed and the airport will need to navigate complex commercial, regulatory and stakeholder environments.

For example, delaying the approval and execution of critical infrastructure projects including a new third runway will forego up to 17.5m passenger trips per annum and constrain the national aviation network.

The full findings can be read via the 2023 Economic and Social Impact Report.