Melbourne Airport’s $4.5 billion makeover
The international terminal will see expanded arrivals and departures areas, new lounge spaces and more.
New drop-off and arrivals zones, an upstairs lounge precinct filled with natural light, more airplane gates and an expansion of the crowded baggage claim area – those are the highlights of a planned $4.5 billion transformation of Melbourne Airport’s T2 international terminal.
The project will be officially announced by Melbourne Airport CEO Lorie Argus this morning, Wednesday March 25, with preliminary works to begin following the opening of Melbourne Airport’s new road network in September.
The expansion program will be delivered in stages over several years, and is enabled by the September 2026 opening of new pick-up and drop-off zones at an integrated hub for T1, T2 and T3, with direct access to the Tullamarine Freeway.
This will in turn will pave the way for the international terminal to extend its footprint into the existing forecourt.
Here is a rundown of what’s ahead for travellers jetting into and out of Melbourne T2:
- an expansion of the international check-in hall with high-tech ‘common user’ baggage drop facilities shared between airlines
- five new gates will be added, capable of accommodating five twin-aisle or eight single-aisle aircraft, so that airlines can schedule more flights – especially around peak periods of high demand
- all departure gates will be located on the same level
- the larger T2 footprint will include an improved lounge precinct, waiting areas and of course retail
- the arrivals area will gain more space, more baggage carousels and more room for border agencies
As previously reported, Singapore Airlines will be among the first airlines to move out of T2’s downstairs lounge dungeon and into a prime spot on an upper level of the terminal.
The new-build lounge will offer 30% more space, alleviating crowding ahead of each of the five daily flights to Singapore, once it opens at the end of 2026 or in early 2027.

Read more: Singapore Airlines to open new Melbourne lounge
“As Melbourne grows, demand for air travel is growing too and we are investing billions of dollars to deliver the infrastructure we need to accommodate that,” says airport chief Argus.
“Increased capacity on our airfield and terminals will allow airlines to schedule more flights to more places, which will give consumers and exporters more choice.”
The expanded international terminal will complement the airport’s third runway, which is due to open in 2031.
Argus is also calling on the federal government to boost its own commitment to the 24-hour gateway through “upgrades to border processing technology and facilities to help further improve the arrivals experience for international travellers.”
Work has also begun on the long-awaited Melbourne Airport rail link, starting with a $4.1 billion rebuild of Sunshine station, which will become a ‘superhub’ junction connecting passengers onto other city and regional rail lines.
This first stage will set up the critical groundwork such as 6km of new track, two rail bridges and a full realignment of passenger and freight lines to untangle one of Melbourne’s most congested rail corridors.
However, the full airport rail line – stretching some 27km from Melbourne Airport to Town Hall via Sunshine and the Metro Tunnel – is not due to be completed until around 2033.









Etihad - Etihad Guest
21 Jul 2019
Total posts 227
If totally bland design and interiors can be considered 'good' then Melbourne airport will extremely and absolutely 'good' indeed.
Singapore Airlines - KrisFlyer
12 Apr 2017
Total posts 210
All new Qantas lounges!?
Qantas - Qantas Frequent Flyer
06 Oct 2016
Total posts 193
I never seem to have a problem with Immigration process or wait, but my god that baggage process needs improving, typically 20-30 minutes after getting cleared and then the chances of a "priority" bag coming out first is about 1 in 20.
If they are expanding those remote gates I would be good to have someone like SQ or CX just commit to them 100% and put their Lounges there
16 Apr 2021
Total posts 6
OMG no.
They've had the "pardon us while we improve the airport" panels and hoardings since covid. All I've seen "improved" is the duty free area on arrival.
It's embarrassing coming back to this airport after visiting almost anywhere in SEA. We can't even get a digital arrivals card. How many times did they try that now?
Qantas - Qantas Frequent Flyer
07 Feb 2015
Total posts 151
I do hope Qantas Business Lounge will also move out of the dungeon and into the new precinct! Natural light, more space...here's hope!!!
13 Apr 2020
Total posts 17
When considered within the confines of a 1960s terminal sandwiched between domestic terminals, I guess it’s okay … likely the best they could come up with. But there will come a time when they’ll need more international gates with few expansion options. While there’s no universe in which Qantas would agree, expanding the international terminal into Terminal 1 and developing a new Qantas terminal next to terminal 4 could be a better long term option. But easy for me to make this point given I’m not paying for it.
24 Aug 2011
Total posts 1270
At one stage, there was a concept plan of T2 taking over T3 (Concourse E) from VA and being rebuilt with a completely new VA T5 being built in alignment with the planned third runway (south of T4) which was originally thought to be the East-West option. Both the E-W third runway (now going to be N-S) and T5 have been ditched.
This plan is an improvement n the current situation but hard to really judge given CGI imagery seems to suggest the terminals will be basically empty which, if it were the case, would mean there is no need for the extension at all.
16 Apr 2021
Total posts 6
OMG no.
They've had the "pardon us while we improve the airport" panels and hoardings since covid. All I've seen "improved" is the duty free area on arrival.
It's embarrassing coming back to this airport after visiting almost anywhere in SEA. We can't even get a digital arrivals card. How many times did they try that now?
25 Feb 2026
Total posts 1
Please No
This is an exercise on how to be reactionary not proactive when it comes to airport planning. When looking at the current airport design it is almost impossible to add more international gates after this expansion due to runway 27 . And this is already being the case for the current T1 Qantas Terminal. Instead of building upon an outdated and constrained design, the airport should look at building a brand new terminal or terminals. With the construction of the third runway running parallel to the current North South runway it provides a new area for which a new terminal can be constructed similar to that of Changi. As if this current plan proceeds the only way to add further capacity would be to have disconnected terminals such as Sydney.
Singapore Airlines - KrisFlyer
26 Jul 2012
Total posts 42
The criticism of the airport continues, because it's deserved, it's an embarrassing as a gateway. Maintenance facilities could be moved to Avalon and what of the space between the 3rd runway and the current 16/34 runways? Why not build the 3rd runway a bit further west so to make space for a midfield terminal? The future of a whole new airport may well be Avalon!
06 Feb 2021
Total posts 71
Another extension to the extension after the last tacked on bit. Tullamarine when it opened, had, from memory, four international gates, and less than twenty international flights per week !! Every additional to the international terminal since then has been an add on to an add on. At what point will both the airport operators, and the Federal Government, whom I understand still own the site, accept the entire structure needs to be replaced with something appropriate for current and future volumes, and in which passenger traffic flows are efficient ? How far between the vehicle drop off zone, through check-in, then immigration, then the never ending irritation of endless "so called " duty free shops, cafes, restaurants etc along a lengthy corridor before people finally arrive at their departure gate is an acceptable distance to expect passengers, particularly elderly or disabled, to walk ? Do the new plans include travellators, or will we see golf cart type vehicles being available for those who can't walk the distance to their gate ?
Qantas - Qantas Frequent Flyer
21 Jul 2013
Total posts 70
What about Avalon? It seems to me that if Avalon were expanded with international carriers and the main domestics involved, and if a railway spur were laid down from the existing Geelong line, it would solve a lot of problems for much less cost and fuss.
05 Apr 2012
Total posts 34
We have waited decades for the airport train whilst Sydney, Brisbane & Perth built theirs. Now we have to wait until 2033! There is a simple solution - pause the SRL extravaganza & transfer all the workers & equipment to the airport link.
Qantas - Qantas Frequent Flyer
01 Apr 2011
Total posts 51
An even simpler solution is to just hand it over to the Chinese to build for us. They'll have it done in 12 months. None of this shillyshallying around.
26 Jul 2023
Total posts 2
No need to swing by Duty Free on your way home - there is plenty of whine in the comments section here.
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