Shellharbour City Council's vision of having national budget airlines flying between Shellharbour Airport and a variety of east-coast locations will hinge upon funding from the state or federal governments.
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On Tuesday February 27, Shellharbour councillors resolved to put an airport master plan out for community consultation.
The plan, developed by aviation experts L+R Airport Consulting, plots two paths forward if Shellharbour council wanted to increase the amount of flights in the Illawarra.
The first would require upgrades to the terminal area, creating a sterile, secure area.
Council CEO Mike Archer said this change would allow Qantas and Alliance Airlines to operate out of Shellharbour Airport and service destinations around Australia.
"That could open up the Sunshine Coast, Gold Coast, Hobart, Adelaide and Avalon as well as some regional domestic routes within NSW."
Upgrades to get the airport to this standard would cost about $2 million and could be delivered in a relatively short time frame.
However, Mr Archer said Shellharbour council had been in discussions with a national budget carrier that would require much more extensive works which could cost up to $18 million.
"We have got one airline very keen to commence operations to our airport."
The Mercury understands a project of this size could not be funded through the Shellharbour council budget and would require funding from outside sources.
The funding would cover the cost of widening the runway strip, moving back existing buildings to give planes greater room to land, as well as slight changes to the length and strength of the runway.
The NSW government previously funded the most recent round of upgrades to the Shellharbour airport, involving expanding the passenger terminal and enabling the development of a business park.
The call for outside funding comes as a coalition of regional councils meet with federal transport and infrastructure minister Catherine King to call for federal government funding for regional airports.
Cr Kylie King, chair of Regional Capitals Australia and mayor of Albury City Council, said regional airports were an underutilised asset and were a significant drain on council budgets.
"We are concerned that unless the Federal Government steps in, Australia's regional airports will be deemed unviable, putting the handbrake on regional growth and our nation's health and security at risk," she said.
This was a call echoed by Shellharbour mayor Chris Homer, who said Shellharbour Airport was yet to reach its potential.
"We want to create a vibrant airport precinct and elevate this airport as a key gateway for the Illawarra."
