Auckland Airport has released details of its integrated domestic terminal it says is well underway as airlines call on it to associated costs.

The new domestic jet terminal is expected to cost $2.2 billion overall, with a further $1.7 billion to cover the cost of integrating domestic and international travel – a spend that that it says is in line with other comparable airport upgrades around the world.

It will mean an end to a walk or bus ride between the terminals, as well as ease congestion, and there will be 70 per cent more baggage reclaim space.

The airport says airlines’ claims that in the long term, landing fees will increase by more than four times what they are now to pay for it are wrong.

Today it revealed details of the interior of the terminal which it says will ease congestion for aircraft and could drive down prices.

The domestic terminal - which is being built on the eastern end of the international one - should be open in 2028-29 and the company promises it will transform the experience of in and from from Auckland and connecting with international flights.

The company has been in a bitter battle with airlines over the building’s impact on aeronautical fees but says it is not a ‘’gold plated’' structure and designers have looked to cut costs of all aspects of the building that will replace its near-60-year-old existing building.

Chief customer officer Scott Tasker said the airport had consulted with the airport over 20 concept designs and in 2019 the airlines supported the plans. Although delayed by the pandemic, enabling work has been well underway and the building of the terminal itself would start later this year.

Aircraft in front of preliminary building work for the new Auckland Airport domestic terminal. Photo / Michael Craig

‘‘Like other major airports, we have fulfilled our obligations extensively to consult with the airlines around the infrastructure development and the price. Ultimately, what consumers tell us is they want to have a better travel experience at Auckland Airport.’'

With detailed design near completion, the new terminal will handle up to 20,000 passengers a day and increase customer processing, with a 44 per cent increase in processing capacity.

Travellers will have a five-minute indoor walk between domestic jet and international travel, meaning an end to walking the current outdoor “green line” walk between terminals or taking the inter-terminal transfer bus service.

Checked luggage will be tracked in real-time in an individual carrier system (ICS) for baggage handling.

For travellers starting their journey in Auckland, check-in kiosks, automatic bag drops, and all-day check-in means the end to waiting in line at check-in counters.

“All our check-ins for both domestic jet and international passengers will be in the same place, making it much easier for travellers,” said Tasker.

Airlines have accused the airport of building a grandiose monument but Tasker said this is not fair as the company was using materials and designs to cut costs while ensuring it was a sustainable, durable structure. A ‘‘cost-effective’' mix of durable carpeted and rubber flooring was being used inside and tray profile steel on the exterior.

When complete the new domestic terminal will have in total 12 jet aircraft gates capable of handling Code C aircraft, such as an Airbus A321, with six gates able to take widebody Code E aircraft (with 300 or more seats) by combining two narrowbody aircraft stands.

That flexibility creates capacity to manage demand surges, for example adding flights for an All Blacks game in Dunedin, and adds a 26 per cent uplift in seat capacity overall.

The airfield around the terminal will be upgraded with electric ground power units for aircraft to plug in at gate to reduce fuel burn and a new fuel system to support sustainable aviation fuel.

Alongside regular airport facilities, there will be dedicated faith spaces, a low-sensory room, baby change facilities in both the male and female bathrooms, family-specific facilities, and gender-neutral bathrooms.

Check-in kiosks and automatic bag drops, capable of future upgrades to biometric technology, to speed up check-in process

In line with IATA best practice: queue wait times of four minutes or less for self-check-in and to drop a bag, less than 7.5 minutes for security, adequate seating at boarding gates, timely baggage arrival with less than 15 minutes from first bag to last bag on belt

Artist impression of the pier at the new Auckland Airport domestic terminal buildings under construction. Photo / Supplied

Device charging points in 50 per cent of seats in pre-departure spaces.

Two baggage reclaims with 180m of belt space – a 70 per cent increase on the current domestic terminal

Airlines pass on airport charges to passengers and they have said new fees in the current five years and beyond could make travel unaffordable. Air New Zealand has estimated airport fees for domestic passengers could reach $46 a passenger within the next 10 years.

Tasker said this is wrong.

“That is absolutely wrong. Whilst we haven’t consulted with the airlines on our prices beyond 2027 and it is a complex process with a lot of inputs. The prices will be approximately half (the $46) we estimate during that period between 2027 and 2032.”

Airports operate under a regulated, user-pays system in which airlines pay to use the core infrastructure – runway, taxiways, and terminal areas they need to operate their business.

Charges are set every five years after consultation with airlines and are reviewed by the Commerce Commission. Although they consult, airports can set the prices as they see fit and airlines are pushing for a review of the regulations covering them and calling for a commercial arbitrator to intervene when there are disagreements.

The airport says landing charges make up less than five per cent of an airfare.

Auckland Airport says its airline domestic jet charges are $10.25 per passenger, moving to $15.45 by 2027 – a similar cost to what other major New Zealand airports charge now.

Grant Bradley has been working at the Herald since 1993. He is the Business Herald’s deputy editor and covers aviation and tourism.

This article was originally published on the NZ Herald here.