Newcastle Airport Debt Rises to $340 Million
Newcastle International Airport saw its total debt liability increase by $105 million last year, sparking criticism from former local officials over financial transparency.
Debt liabilities for Newcastle International Airport rose to $340 million for the financial year ending June, an increase of $105 million from the previous year's $235 million. The figures were disclosed in Port Stephens Council papers, revealing the financial state of the airport co-owned by the Newcastle and Port Stephens councils.
The airport has faced scrutiny over cost blowouts linked to a new international terminal and its property development business. While management denies facing financial trouble, former Port Stephens mayor Craig Baumann described the current debt levels as a "financial accident waiting to happen." Baumann suggested that increasing passenger numbers would be insufficient to reverse the debt, arguing that land sales are the only viable solution.
Despite the financial pressure, passenger numbers grew to 1.3 million last year. The airport is currently pursuing state government co-investment for additional routes through a proposed five-year Newcastle Airport Accelerated Aviation Growth Fund. Former Port Stephens mayor Steve Busteed criticized the airport's transparency, claiming that passenger numbers are not significantly higher than they were six or seven years ago.
Airport management declined to comment on the debt increase or director fees ahead of an annual general meeting with its council shareholders.
