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The ongoing saga of Newcastle Airport’s finances has taken another turn, with the Lord Mayor of Newcastle demanding an investigation into the airport’s management and governance.
Lord Mayor Dr Ross Kerridge this week called for an independent inquiry following a months-long stoush between the airport and the Newcastle Herald over articles in the newspaper claiming the airport is struggling with debt.
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According to the Herald, the airport is contemplating layoffs – a claim denied by interim CEO Andrew Warrender in an email to staff – which prompted the Lord Mayor to act.
“Recent media reports have raised important questions about Newcastle Airport’s financial status and management that deserve proper scrutiny,” said Kerridge.
“When we’re seeing reports of planned staff redundancies coming just weeks after public assurances of stability, it raises legitimate concerns that need addressing.
“The community deserves clarity on the true state of our regional asset. We must ensure that every dollar is accounted for, and that the interests of Newcastle and Port Stephens ratepayers are fully protected.”
In a statement, the airport told Australian Aviation it would “welcome an independent review of our prudent financial plan if our shareholders want that to happen”.
“Newcastle Airport operates under the regulatory oversight of the Australian Securities and Investments Commission (ASIC), not the Office of Local Government (OLG),” a spokesperson said.
“We maintain full transparency within our governance structure, shareholders and partnership board, with finances independently audited.
“Our Shareholders have nominee directors on our Board of Directors, and we already provide full briefings to our Councils, including one yesterday (Tuesday 18/03/25).
“We note Local Government Minister Ron Hoenig has confirmed that with two nominated directors, the City of Newcastle already has adequate oversight over the airport corporation and its operations.”
Port Stephens Mayor Leah Anderson has also pushed back on the calls for a probe, saying the airport has her council’s full support.
“The reporting over the weekend stating the Lord Mayor of Newcastle is calling for an independent review by the Office of Local Government into Newcastle Airport has taken me by total surprise. These concerns appear to be based on recent media reporting,” she said in a statement.
“This only serves to unnecessarily increase community concern, and it impacts those staff and contractors working to deliver this much-needed regional asset.”
Port Stephens Council is a 50 per cent shareholder of Newcastle Airport, and Anderson says her council has worked with the airport and the City of Newcastle to “transform Newcastle Airport from a small regional hub into a future globally recognised precinct for defence, aviation and aerospace”.
“As the airport moves through this period of significant growth, it has continued to effectively manage the challenges that come with it,” she said.
“The investment required to develop an international-ready airport and significant property developments is substantial, and it’s essential that Newcastle Airport continue to maintain a prudent and measured approach to the operations of the business.”
Newcastle is preparing to open its redeveloped international terminal this year, which was delayed from the end of 2024 but is expected to open in the second quarter of 2025. The final roof beam was placed on the terminal in October, marking a major milestone.
The airport also signed a memorandum of understanding with the NSW government last year which will see it given funding from the state’s Aviation Attraction Fund (AAF) to attract and maintain new routes.
The state government expects Newcastle Airport’s $250 million upgrade to bring in 850,000 additional passengers per year, generating $6.2 billion in the visitor economy as well as $6.5 billion in additional freight over the next 20 years.
