Auckland Airport reaches major milestone as construction begins on new domestic jet terminal

Auckland Airport (AKL) has reached a major milestone in its new domestic jet terminal project, with steel columns now being craned into place as vertical construction begins. Rising up to 21 metres, these columns will support the domestic terminal headhouse, which will house arrivals, baggage claim, airline lounges, amenities, and a new baggage system.

Susana Fueyo Suarez, Auckland Airport Chief Infrastructure Officer, said:
“This is one of New Zealand’s most significant infrastructure projects underway right now, and it’s exciting to see the structure rise up out of the ground. We are making good progress on this multi-year build, but it really is significant to be starting work on the main structure itself. You’d have to go back almost 50 years to when the international terminal was built for a project of this scale at Auckland Airport.”

A major infrastructure development

AKL is undergoing a multi-billion-dollar redevelopment, improving its airfield, terminals, utilities, and transport networks. As New Zealand’s third-largest port, it facilitates NZ$35.1 billion in annual economic value. The new terminal will provide:

• 44% more passenger processing space
• 26% more airline seat capacity
• An additional 10% flexible capacity via bus lounge operations
• A short indoor walk between domestic and international flights

The southern section of the headhouse is currently under construction and will include a new individual carrier system (ICS) baggage handling system, fully integrating with the upgraded international terminal’s baggage system.

“Together, this will deliver a modern baggage system providing the functionality needed by airlines and their ground handlers,” said Ms Fueyo Suarez.

Above the baggage system, the traveller dwell areas will offer charging stations, cafés, and lounges, while the upper floors will house airline lounges.

Supporting local industry

Each steel column is transported pre-dawn from D&H Steel Construction’s West Auckland facility, where a 50-strong team has been working on the airport project since late 2023. The 12,000m² facility is fabricating 1,600 tonnes of column steel and 33,000 tonnes of structural steel for the build.

Ms Fueyo Suarez highlighted the airport’s long-standing partnership with D&H Steel Construction, saying:
“Auckland Airport has had a near 40-year association with D&H Steel Construction, with the company having worked on most of our major projects. A project of this scale creates a ripple effect across the construction industry, supporting hundreds of jobs and businesses and providing a steady, secure pipeline of work.”

Richard Hine, General Manager, D&H Steel Construction, added:
“We’ve had a long history with Auckland Airport, delivering the steel fabrication for some of the airport’s biggest projects. During the construction of this next phase, we will have more than 200 employees working on this project. We’re really proud to be part of this significant development for Auckland and its future.”

Economic impact and future growth

Ms Fueyo Suarez highlighted Auckland Airport’s role in New Zealand’s economy, stating:
“Every international touchdown is worth about NZ$1.4 million to the country. As we complete our infrastructure upgrades, we expect that economic impact to increase to NZ$54.9 billion by 2032, including NZ$41.1 billion in annual freight movements.”

AKL’s aviation connections facilitate NZ$3.5 billion in economic activity from international travellers and NZ$6.8 billion from domestic travel. Locally, this generates NZ$1.8 billion for Christchurch and NZ$813 million for Queenstown annually.

A global-scale airport redevelopment

Beyond the new domestic terminal, Auckland Airport is working on climate resilience, airfield expansion, faster passenger processing, and enhanced traveller experiences. The redevelopment includes 400,000m² of aeronautical infrastructure, with 97% of projects in design, procurement, or delivery phases.

“Globally, there are around 200 airport redevelopment projects underway, all preparing airport infrastructure for the decades to come,” said Ms Fueyo Suarez.

In September 2024, AKL signed an NZ$800 million contract with Hawkins Construction (a Downer Group subsidiary) to manage the construction and delivery of the new domestic jet terminal—the most significant project in AKL’s transformation.

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