Melbourne Airport is urging the Federal Government to reinvest increased passenger taxes into border technology and infrastructure upgrades, arguing faster arrivals processing is critical to maintaining a world-class gateway experience.
The call comes as the airport revealed international passenger numbers dipped 7.1 per cent year-on-year in April, impacted heavily by reduced services through the Middle East amid ongoing conflict with Iran.
More than 3 million passengers travelled through Melbourne Airport during the month, including more than 950,000 international travellers and more than two million domestic passengers.
Seat capacity from Middle Eastern carriers plunged 67.6 per cent compared to the same period last year, following disruptions to services via Dubai, Doha and Abu Dhabi. However, the downturn was partially offset by increased capacity from Singapore Airlines and China Southern Airlines, alongside stronger load factors across other international routes.
Despite the April decline, international passenger numbers remain up 3.7 per cent for the financial year to date as services gradually return and airline schedules stabilise.
Melbourne Airport CEO Lorie Argus said the Federal Government’s $10 increase to the Passenger Movement Charge presents an opportunity to modernise Australia’s border experience.
“We’re investing $7.5 billion dollars of private money to deliver a third runway and expand Melbourne’s international terminal to cater for growing demand and improve the experience for passengers,” she said.
“As we modernise our airport, we will continue partnering with the Federal Government to modernise the border and invest in technology that can deliver a faster, more seamless arrival experience for international travellers.”
Argus said border processing had become a growing frustration for travellers as international volumes surged without matching upgrades to infrastructure.
“Our international passenger numbers have doubled in the past 10 years but our Border Force kiosk numbers have remained the same, and the international arrivals experience has become one of our biggest passenger pain points,” she said.
The airport’s major redevelopment program continues later this year with the opening of the first phase of its international terminal expansion project, including a new baggage system and revamped pick-up and drop-off zones servicing Terminals 1, 2 and 3.
According to Argus, the works will pave the way for further expansion of the terminal footprint into the current forecourt and departures ramp area.
“Even with the current global uncertainty, we know we need to invest in the future and build for the long term,” she said.
There are also signs of recovery across key Gulf routes, with Emirates now operating twice-daily services between Melbourne and Dubai, while Qatar Airways is set to resume double daily flights to Doha from June.
“While this is down on what was being flown before the Middle East conflict began, it represents a welcome return of stability to operations through some of our most important global hubs,” Argus said.
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