page_title: Melbourne Airport
section_title: Expansion and privatisation
hierarchical_section_title: Melbourne Airport / History / Expansion and privatisation
caption_attribution_description: English: Boeing 727-276 VH-TBG of Trans Australia Airlines at Melbourne's Tullamarine AIRPORT
context_page_description: Melbourne Airport, colloquially known as Tullamarine Airport, is the primary airport serving the city of Melbourne, and the second busiest airport in Australia. It opened in 1970 to replace the nearby Essendon Airport. Melbourne Airport is the main international airport of the four airports serving the Melbourne metropolitan area, the other international airport being Avalon Airport.
  The airport comprises four terminals: one international terminal, two domestic terminals and one budget domestic terminal. It is 23 kilometres northwest of the city centre, adjacent to the suburb of Tullamarine. The airport has its own suburb and postcode—Melbourne Airport, Victoria.
  In 2016–17 around 25 million domestic passengers and 10 million international passengers used the airport. The Melbourne–Sydney air route is the third most-travelled passenger air route in the world. The airport features direct flights to 33 domestic destinations and to destinations in the Pacific, Europe, Asia, North America and South America. Melbourne Airport is the number one arrival/departure point for the airports of four of Australia's seven other capital cities.
context_section_description: In 1988, the Australian Government formed the Federal Airports Corporation (FAC), placing Melbourne Airport under the operational control of the new corporation along with 21 other airports around the nation.
  The FAC undertook a number of upgrades at the airport. The first major upgrades were carried out at the domestic terminals, with an expansion of the Ansett domestic terminal approved in 1989 and completed in 1991, adding a second pier for use by smaller regional airlines. Work on an upgrade of the international terminal commenced in 1991, with the 'SkyPlaza' retail complex completed in late 1993 on a site flanking the main international departure gates. The rest of the work was completed in 1995, when the new three-level satellite concourse was opened at the end of the existing concourse. Diamond shaped and measuring 80 m (260 ft) on each side, the additional 10 aerobridges provided by the expansion doubled the international passenger handing capacity at Melbourne Airport.
  In April 1994, the Australian Government announced that all airports operated by FAC would be privatized in several phases. Melbourne Airport was included in the first phase, being acquired by the newly formed Australia Pacific Airports Corporation Limited for $1.3 billion. The transfer was completed on 30 June 1997 on a 50-year long-term lease, with the option for a further 49 years. Melbourne Airport is categorized as a Leased Commonwealth Airport.
  Since privatization, further improvements to infrastructure have begun at the airport, including expansion of runways, car parks and terminals. The multi-storey carpark outside the terminal was completed between 1995 and August 1997 at a cost of $49 million, providing 3,100 parking spaces, the majority undercover. This initially four-level structure replaced the previous open air carpark outside the terminal. Work commenced on the six-story 276-room Hilton Hotel (now Parkroyal) above the carpark in January 1999, which was completed in mid-2000 at a cost of $55 million. Expansion of the Qantas domestic terminal was completed in 1999, featuring a second pier and 9 additional aircraft stands.
  In December 2000, a fourth passenger terminal opened: the Domestic Express Terminal, located to the south of the main terminal building at a cost of $9 million. It was the first passenger terminal facility to be built at Melbourne Airport since 1971.
  Expansion of carparks has also continued with a $40 million project commenced in 2004, doubling the size of the short term carpark with the addition of 2,500 spaces over six levels, along with 1,200 new spaces added to the 5,000 already available in the long term carpark. Revenue from retail operations at Melbourne Airport broke the $100 million mark for the first time in 2004, this being a 100 per cent increase in revenue since the first year of privatization.
  In 2005, the airport undertook construction works to prepare the airport for the arrival of the double-decker Airbus A380. The main work was the widening of the main north–south runway by 15 m (49 ft), which was completed over a 29-day period in May 2005. The improvements also included the construction of dual airbridges (Gates 9 and 11) with the ability to board both decks simultaneously to reduce turnaround times, the extension of the international terminal building by 20 m (66 ft) to include new penthouse airline lounges, and the construction of an additional baggage carousel in the arrivals hall. As a result, the airport was the first in Australia to be capable of handling the A380. The A380 made its first test flight into the airport on 14 November 2005. On 15 May 2008, the A380 made its first passenger flight into the airport when a Singapore Airlines Sydney-bound flight was diverted from Sydney Airport because of fog. Beginning services in October 2008, Qantas was the first airline to operate the A380 from the airport, flying nonstop to Los Angeles International Airport twice a week. This was the inaugural route for the Qantas A380.
  In March 2006, the airport undertook a 5,000 m² (54,000 sq ft) expansion o
caption: Australian Airlines aircraft at Melbourne Airport in 1988.
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