The massive changes coming to Melbourne Airport

Expect more room for lounges, shops and aircraft gates...

By David Flynn, January 14 2025
The massive changes coming to Melbourne Airport

Melbourne Airport is planning a dramatic expansion of its international terminal as more overseas passengers stream through Australia’s largest 24-hour airport.

December 2024 saw a record-breaking 1.148 million international passengers, while foreign airlines now account for 72% of all international seat capacity into Victoria.

One more stat to bring this into perspective: international seat capacity into Melbourne is also at an all-time high, at 113% of pre-pandemic levels, driven by new carriers such as Turkish Airlines and a steady build-up by Chinese carriers.

All this is putting pressure on existing facilities, especially as the last expansion of Melbourne’s T2 international terminal was in 2011.

So what’s on the cards for Melbourne T2?

For starters, the completion of the airport’s new elevated road network in 2026 “will allow for an expansion of the international check-in and baggage claim halls.”

Melbourne’s international satellite terminal

The airport says that “discussions continue on an expanded international satellite” terminal to take pressure of the main T2.

The satellite terminal “would increase capacity for airline lounges, retail outlets and passenger waiting areas” and also include up to five new gates for twin-aisle jets such as the Airbus A330 and A350, and Boeing 777 and 787.

Melbourne Airport CEO Lorie Argus said the plans were being developed in response to increasing passenger demand, with the existing international terminal often requiring bussing during peak periods.

“We’re setting new records for international passenger numbers and as Melbourne’s population grows, it’s important that our infrastructure grows too,” she said.

“During peak periods we are already experiencing regular congestion in the international arrivals area, so it’s obvious to us that our passengers and airlines need more space.”

The first step in expanding T2 is a $500m upgrade to the terminal’s baggage handling system, which will increase capacity by allowing for ‘any-time’ check-in and early bag storage.

“More gates, more aircraft parking stands, more check-in space, and a larger baggage reclaim hall, combined with construction of Melbourne Airport’s third runway, would allow airlines to add more flights during peak times,” Argus adds.

The airline aims to have its T2 revamp plans formalised by the middle of this year so that work can begin “soon as the enabling infrastructure projects are completed.”

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Qantas - Qantas Frequent Flyer

05 Oct 2016

Total posts 163

I hope the satellite terminal is not disconnected with a long transit..... And QF is complaining about the rise in costs. Seriously what can they say when they treat Melbourne as second class for their flights anyway...

Qantas - Qantas Frequent Flyer

29 Jan 2019

Total posts 3

Agree re QF - full 737s between AKL and MEL especially during holidays and special events (like Aussie Open) is ridiculous - as a lifetime gold QF FF I'm considering moving to AirNZ or Virigin, sick of the 737 when AirNZ offer the dreamliner!

Virgin Australia - Velocity Rewards

24 Jan 2018

Total posts 866

Great news for MEL.  Bring it on.

Jetstar Airways - Qantas Frequent Flyer

04 May 2018

Total posts 22

I flew into Melbourne Airport last week from Bangkok (7.05am arrival) and the plane parked at a remote stand near Terminal 4. It was a throwback to the '70s. A parallel runway or two would also help, the Etihad Airways plane parked on the main North-South runway overnight highlighted that point.

21 Apr 2017

Total posts 16

Melbourne Airport is well beyond its used by date & an embarrassment to Melbourne as its gateway to Australia. The airport should have an international terminal on the western side & domestic where it is currently located on the eastern side.  Access is appalling, parking costs are astronomical & the retails & restaurants are a joke. Don’t even get me started on the rail link. Major investment is required to bring it into the 21st century. 

06 Feb 2021

Total posts 74

Totally agree on the rail link, it's non-existence is more than a joke.  With respect to there being a new,  purpose built for the current and future volume, international terminal on the other side, I would agree but on one not-negotiable condition. That as part of its construction, the airport is required to build, and operate in perpetuity, a frequent free automated shuttle train between the two terminals as at Changi, Dubai, and plenty of other airports around the world.    

Jetstar Airways - Qantas Frequent Flyer

04 May 2018

Total posts 22

Melbourne Airports best feature is that the International and Domestic terminals are all connected, it's a simple five minute walk from terminal 1 to terminal 4. So to split the domestic from the international is a major step backwards. On the other hand, its major drawback is the lack of a heavy rail line. As for parking costs being astronomical, and the retail and restaurants being a joke, welcome to 90% of the airports worldwide.

Air Canada - Aeroplan

28 Feb 2015

Total posts 133

The direct connection between domestic and international is the best feature at an otherwise superannuated airport. Please never renovate it to be like Sydney, with its IMPOSSIBLE Qantas bus shuttle and equally awful T-bus shuttle.

Qantas - Qantas Frequent Flyer

05 Oct 2016

Total posts 163

Whatever bad points it has, sorry but it eats Sydney for breakfast.... I personally do not find it bad at all. Mostly I'm pretty impressed especially with international arrivals and departures in customs/security.

Jetstar Airways - Qantas Frequent Flyer

04 May 2018

Total posts 22

Melbourne Airports best feature is that all 4 terminals are connected. I can walk from the far end of terminal 1 to the far end of terminal 4 in less than 10 minutes. Separating the International terminal from the Domestic terminals would be a major step backwards.

I agree that access is appalling. I always catch Skybus between the airport and CBD and have always fond this to be an excellent option, but if the Tullamarine Freeway is congested (morning and afternoon peak always), then even Skybus can be slow going. I strongly support a rail link, and this is Melbourne Airports major drawback, and an embarrassment for successive state governments.

As for astronomical parking costs, and the retail and restaurants being a joke, you could be talking about 90% of the world's airports.

17 Nov 2023

Total posts 72

A useful tip to save $$$ (instead of the rip-off Skybus), is that you can catch a Craigieburn-bound train to Broadmeadows where there are 15 minute 901 busses that run almost directly to the airport.

You can use your Myki and it's about 1/4 of the price.

13 Apr 2020

Total posts 19

It will be interesting to see if (predominantly) Qantas is willing to actually foot-the-bill in terms of the increased passenger handling charges stemming from this proposal and a new parallel runway. An upbeat press release from the airport authority is nice, but I suspect there might be a couple more years of negotiation before this can actually be confirmed. I would think that airlines would be arguing that having to bus passengers from a few flights a day parked at a remote stand is consistent with other medium sized cities/airports and that infrastructure upgrades need to be genuinely matched to demand. But that off my chest, agree with Mattr72 and others that Mel airport is terrible. A further patchy update to building infrastructure just shifts the problem to again be addressed down-the-track. My personal view is that the international terminal should be expanded to include the existing Qantas terminal (e.g. demolish and rebuild the gates to include a departure and arrival level) and a new Qantas terminal developed. I acknowledge there’s no universe in which Qantas would ever agree to that. 

Qantas - Qantas Frequent Flyer

01 Aug 2013

Total posts 25

Personally I can think of nothing worse than transitting from international to domestic in somewhere like Sydney and catching the airside bus or paying for the train between terminals.  If there is going to be a satellite terminal or totally separate terminal the connections are fast and not getting crammed into a sardine can like the airside bus at SYD. I prefer to transit in SIN or BKK to avoid that bus... Do not bring that crap to MEL, the terminal building might be old but at least you can easily walk between them

Thai Airways International - Royal Orchid Plus

15 Jan 2013

Total posts 462

It was a step back in time returning from Bali due to our late arrival just after 8:10am coming in on Virgin Australia and being bussed to the terminal.it was a shock to the system given I had a proper gate when i left Australia.the layout for those of us connecting from other parts of Australia is easy enough but you need plenty of time to get through immigration/customs and to order your duty free to collect on return.I made it through including getting on the plane within 75 minutes but realistically you need to allow closer to 3 hours.

22 Sep 2017

Total posts 113

And so the transport saga goes on.

The airport pushes for an infeasibly expensive underground rail link.

The government says yeah, nah.

The airport finally agrees to an above-ground station.

The government says too late.

The airport builds more road access...

05 Apr 2012

Total posts 34

I am tired of lugging my bags onto Skybus, asking young people seated downstairs to go upstairs because I can’t climb up. Then I squeeze into one of the small seats & watch the bags go back & forth! Not sure if to blame Melbourne Airport or the state labor government! 

17 Nov 2023

Total posts 72

Save the rip-off on Skybus.  The 901 bus to Broadmeadows (connects with Flinders Street train) runs every 15 minutes and only costs a couple of dollars.

Qantas - Qantas Frequent Flyer

01 Apr 2017

Total posts 37

What I’m reading is that Melbourne AP will finally likely have an airport rail service.    An internal underground atuomated one linking to the satellite terminal 😀.  

02 Jun 2017

Total posts 5

Why is it that cities like Bangkok could build a brand new airport or add a whole new terminal recently? Likewise Kuala Lumpur, Seoul, Istanbul and Sydney all built or are building a major new airport. Yet conservative Melbourne Airport only expands via band aid solutions bit by bit. Developing a new rail link, a new terminal, new gates, a new runway, large scale arrivals or baggage-handling facilities is like pulling teeth. Announcing “up to 5 new gates” is so tentative it’s not even worth publishing.  

21 Jul 2020

Total posts 24

All those cities you mentioned hav e one amazing airport, the rest are very average. This doesn’t happen in Aus because we all want a flash airport in our own city so we end up with average ones.

British Airways - Executive Club

06 Sep 2022

Total posts 2

Little point without the addition of at least one new runway

Qantas - Qantas Frequent Flyer

15 Apr 2019

Total posts 1

I wonder how much international pax from Melbourne is due to lack of services out of Adelaide requiring Adelaideans to fly to Melb including our totally absent so-called national carrier. A joke that airline is!

And build the rail link with an underground station at the airport. The gov needs to see this as the one chance to get the rail link done right

29 Jan 2020

Total posts 45

This announced Terminal expansion will basically just improve a currently overloaded International Airport, and cater for the current passenger throughput.

But of course the airport will want more flights to help recoup the money, and 5 or so years later it will be back to where we are now!

I went to UK in May 2023.  I now use a wheely walker, which had to be checked in.  My travel agent had asked for wheelchair assistance, but I had to get to the check-in desk myself.  From there to MAN, no problem, just needed to wait for the chair.  Coming home fro Zurich, landed at a remote stand in Dubai and had to get the bus to the terminal.  That part was OK, but when I got off at the terminal, I had to walk without my walker to find somebody to ask, then he walked with me to where I had to wait for the wheelchair.  Last year, I flew to Perth.  Coming home, there was a buggy to take me and a few others to the top of the escalator for the baggage reclaim.  I looked at the lift--out of order.  I wasn't game enough to try the escalator as I have problems with balance, so I headed back towards the plane.  I met a nice man, one of the flight crew, and he directed me to another lift, which was a fair walk.  Then I had to get from that lift back again to the carousel, where I could finally get my walker.  This year, I'm going to UK again and am flying back from Milan via Dubai, so I anticipate another hassle in Dubai.  I hope all will be OK when I land back in Melbourne. So it isn't only MEL with problems.

I arrived into MEL a couple of weeks ago on Singapore Airlines, we ended up parking at a remote stand and it took an hour for the buses to arrive to take us to the terminal. MEL desperately needs these upgrades.

Virgin Australia - Velocity Rewards

24 Jan 2018

Total posts 866

I wonder if - this time - the architects/planners remember to instal travelators airside, like most quality international airports have?  Bet you a bottle of bubbles they forget (a-gain).


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