AAA welcomes NAIF loan for Townsville Airport redevelopment

"The Federal Government has recognised the importance of Townsville Airport in driving regional growth," Ms Wilkie said.

"The airport redevelopment is absolutely essential, with passenger numbers increasing more than 80 per cent since the airport was last upgraded.

"This project will not only meet the needs of today's passengers, but will ensure Townsville Airport can support future growth to facilitate tourism and trade in the region in years to come.

"It is fantastic to see the NAIF being used to help deliver airport infrastructure that will create real opportunities for Northern Australia."

Ms Wilkie said it was now important for Qantas to get behind the project as well.

"We encourage Qantas to join the Federal Government and Virgin Australia in their support for the project to ensure the airport can get on with the job of meeting the needs of passengers and the community," Ms Wilkie said.

The NAIF loan will help fund the $80 million Project Alive redevelopment, delivering an improved terminal able to meet current and expected passenger capacity, and core infrastructure. The project will take more than two years to complete.

An airport apron upgrade was delivered last year.