$100m airport upgrade and 70 more flights

THE number of domestic and international flights from Darwin will increase dramatically, following Jetstar and the airport resolving a long-standing dispute over a pricing agreement.

Jetstar yesterday announced more than 70 weekly return services from Darwin to Adelaide, Melbourne, Sydney and Bali, and its intention to fly direct to Manila. Qantas also announced direct flights to Melbourne from Darwin.

The airport also announced a $100 million upgrade, including a $35 million terminal upgrade over the next two years.

Jetstar and the airport have been at loggerheads for about two years over a pricing agreement, and airline chief commercial officer David Koczkar would not be drawn on what the new, long-term arrangement was.

"The commercial arrangement provides us with the ability to improve services ... to and from Darwin," he said.

Have your say - leave your comment below

Airport CEO Ian Kew said the pricing would be published online when it was finalised with other airlines, but said both sides had to negotiate.

Jetstar also announced it would increase its return flights from Darwin to Adelaide, Sydney and Melbourne, and Qantas said it would introduce a direct flight to Melbourne three times a week.

Mr Kew said that the investment would include a $33.5 million upgrade to the Darwin terminal over the next two years.

He said it would include a 35 per cent increase to floor space in the terminal, and an expansion to the western side of the airport.

The expansion would include a bigger international departures area and more retail space, Mr Kew said.

He said the money would come from the shareholders and the bank, not the Northern Territory Government.

Tourism Minister Malarndirri McCarthy said the agreement was part of a key government strategy to increase airline services to the Northern Territory.

"The extra Jetstar flights are great news for the northern Territory's tourism industry and for Darwin residents," she said.

"Growing a sustainable airline industry in the Northern Territory is vital for the local tourism industry."

Opposition leader Terry Mills said it was a case of the government "overselling and under-delivering during an election campaign".