NSW Gov’t Support Underpins Qantas Group’s Newcastle Expansion
By Andrew Curran.
Funding from the New South Wales Government is behind the Qantas Group’s recent expansion at Newcastle Williamtown Airport (NTL). In the past six months, Qantas Group has announced three new routes from the regional airport and all are taking off with government help.
In September, Qantas began thrice-weekly flights on the Newcastle – Perth (PER) city pair using Network Aviation-operated A319-100s. Later this month, Qantas Group subsidiary Jetstar will start three times weekly A321-200NX flights on the Newcastle – Denpasar (DPS) city pair, taking advantage of Newcastle’s recently upgraded international terminal facilities.
Last week, Jetstar also said it would begin thrice-weekly A320-200-operated round-trips on the Newcastle – Hobart (HBA) route.
All three services are benefitting from the New Wales Government’s Aviation Attraction Fund, which offers airlines financial incentives and marketing support to start flights to various airports around the state. There is a specific funding stream that targets routes in and out of regional airports, like Newcastle Williamtown. Other funding streams target flights to Sydney (SYD) and the new Western Sydney Airport (WSI).
Government funding and support are becoming important factors in new route decisions in Australia. State governments vie to attract airlines. Sydney Airport says every dollar invested into securing flights to that airport generates an AUD9 (USD5.9) return, with a typical international service supporting 1,200 full-time jobs and delivering AUD130 million (USD84.6 million) in annual economic benefits.
Melbourne Airport says one daily international flight is worth AUD190 million (USD123.6 million) dollars to the Victorian economy annually.
Newcastle Airport is smaller – although it is the second-busiest passenger airport in New South Wales, handling 1.184 million passengers in the 12 months to June 30, 2025. The airport says it generates around AUD1.2 billion (USD780 million) for the New South Wales economy each year.
Jetstar CEO Stephanie Tully says the Qantas Group flies more passengers in and out of Newcastle than any other airline. Virgin Australia and Fly Pelican are the other scheduled passenger airlines using the airport.
Existing flights link Newcastle Williamtown to Sydney (SYD), Canberra (CBR), Melbourne (MEL), Gold Coast (OOL), Brisbane (BNE), Adelaide (ADL), and Cairns (CNS).
Jetstar expects its Hobart flights to add around 22,000 seats to Newcastle Airport’s annual seat count, while the Perth flights will add approximately 45,000 seats annually. The upcoming Denpasar flights, Newcastle Airport’s only international service, will provide over 70,000 seats annually.
Airlines says support offered by governments (and airports) can help reduce the financial uncertainty around new routes. The Qantas Group is not alone in taking advantage of the incentives on offer, and is perfectly within its rights to do so.
Meanwhile, Newcastle Airport CEO Linc Horton says he will continue to campaign for additional airlines and routes at the airport. He says more flights open more opportunities for tourism, business and the wider economy. The New South Wales Government also says it will continue to work with the airport to secure new routes.
“The recently launched Visitor Economy Strategy sets out our vision to grow the NSW visitor economy to AUD91 billion (USD59.2 billion) in visitor expenditure by 2035, and increasing domestic aviation capacity will be instrumental in achieving this,” said Minister for Jobs and Tourism Steve Kamper. “The strategy outlines a need to add 8.5 million new airline seats to New South Wales airports to achieve our ambitions for the visitor economy.”
The Tasmanian Government also chipped in to help with the start of the Newcastle - Hobart service, saying in a media statement that the route was secured with support from their own Aviation Attraction Fund.
“We are proud to work with Jetstar and Hobart Airport to support this new route and unlock opportunities for Tasmanians and visitors alike,” said Jane Howlett, Minister for Tourism, Hospitality and Events.
"Aviation access is vital to Tasmania, with strong capacity and frequent services ensuring travel remains affordable and convenient," she added. “The Tasmanian Government’s Aviation Attraction Fund is leveraging opportunities like this new direct air service to support our tourism industry, increase trade opportunities and grow our economy.”
Photo: Newcastle Airport.
Map Image: https://www.greatcirclemap.com/