Options to replace Auckland Airport's ageing domestic terminal have been announced.
The company is considering a site north of the international terminal on "greenfields" land or developing land between the domestic and international terminals.
"Travellers will be more than aware we are experiencing space constraints at the current domestic terminal which was built more than 45 years ago in a very different era," airport chief executive Simon Moutter says.
The new terminal is expected to cost between $200 to $300 million and will be built over several years.
Mr Moutter says there are costs and benefits to each location and a decision is expected by the end of the year.
The land between current domestic and international terminals would provide shorter taxiing times for domestic passengers but would be more complex to develop.
Building on land north of the international terminal would make construction easier and be closer to the incomplete northern runway.
However, Mr Moutter says it would increase taxi times for domestic travellers in the long-term.
A decision will be made after consulting with airlines.
Increasing domestic capacity is a priority and work on a second runway to the north of the airport won't be considered until "next decade", Mr Moutter says.
In the meantime, $28 million of modifications will be made to the existing domestic terminal to ease pressure on baggage processing, boarding and disembarking, forecourt, traffic flows, security screening and toilet facilities.
"The modifications will patch-up the existing domestic terminal for a few more years while we finalise our longer term plans for a new terminal."
The "patch-up" will be funded by a new domestic passenger charge.
Airlines must add an additional $1.32 per fare to the fees they pay the airport, which currently stand at $4.23 – a rise over just over 30 per cent.
International passenger fees for airlines will initially drop by 58 cents to $21.55 and then increase by around 2 per cent annually over the next four years in line with inflation.
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