Auckland Airport (ASX:AIA) has begun its biggest redevelopment to date with a brand-new domestic terminal to be fully integrated into the international terminal.

The company says the replacement of the 57-year-old domestic terminal represents a multi-billion-dollar investment in the future of travel, and is also the biggest redevelopment since the airport opened in 1966.

Auckland Airport notes it has been consulting with its major airline customers since May 2011 on the replacement for the ageing terminal which, over that time, has resulted in 21 concept designs being developed and discussed with major airlines as part of the consultation process.

“The domestic terminal is almost 60 years old and needs replacing. It’s nearing capacity and it’s no longer fit for purpose and hasn’t been for some time”

The company reports it has given approval for the project to move into the final stages of design as part of the $3.9 billion construction program, and is expected to take place over the next 5 to 6 years. The program will also comprise the $2.2 billion combined terminal plus a number of other key projects associated with the development.

Auckland Airport also notes the terminal integration plan represents a ‘significant’ part of its wider 10-year capital program, which is hopes to bring domestic travel and international travel together since 1977.

In addition, it is hoped the integration program will enable the company to carry out key upgrades on the airfield to ensure the airport remains resilient, as well as meet climate change goals and create a more sustainable airport.

With the redevelopment campaign now underway, Auckland Airport announces the combined terminal will serve larger and more efficient domestic jet aircraft, as well as generate about 2,000 additional jobs at the height of construction.

Speaking on the redevelopment, Auckland Airport Chair Patrick Strange says: “This is a major investment for Auckland Airport, one which we have been working towards for many years.

The domestic terminal is almost 60 years old and needs replacing. It’s nearing capacity and it’s no longer fit for purpose and hasn’t been for some time. If it wasn’t for the pandemic, we would already be well underway with its replacement.

We have worked with major airlines for over a decade on this. We’ve considered all feedback, including potential alternative locations and even further delays to infrastructure development. All of this has been carefully thought through and we have made changes where appropriate, but now we need to get on with it.

Every dollar we spend on this infrastructure will serve travellers, airlines and New Zealand well into the future.

It will ensure New Zealand’s main gateway is resilient and sustainable, supporting airline ambitions for a low-carbon future and strengthening our infrastructure in the face of increasingly severe weather events due to climate change.”

The new integrated terminal is expected to open between 2028 and 2029.

Auckland Airport is an ASX-listed company founded in 1966 and represents New Zealand’s ‘gateway’, as well as one of the largest listed companies. The company has responsibilities to trade and tourism, its passengers, partners, shareholders, and its many stakeholders.