Newcastle Airport will now be less reliant on council funding under a structural change.
Newcastle and Port Stephens Councils have endorsed a structural change, which allows the airport to borrow money from external sources.
Newcastle City Council's City Assets Director Steve Edmonds said the airport has played a significant part in stimulating the local economy but it has been hampered in the past by restrictive structure.
“Newcastle Airport will now be less reliant on the two local councils, Newcastle and Port Stephens, as it currently is restricted to funding being provided by them," he said.
"It will now be able to borrow money directly from external sources."
The new structure will also allow for additional investors to be sought with the council’s maintaining the majority shareholding and for dividends to be paid to shareholders."The current arrangement is that any operating surplus must reinvested back into the airport, however once the restructure is complete the shareholder councils will be entitled to receive a dividend and this is forecast at $36million over the next 14 years."