The Newcastle Airport runway will be upgraded, creating thousands of local jobs.
The upgrades will also support new domestic and international travel destinations for residents and businesses.
The runway will be widened with a $66 million investment to accommodate longer range domestic and international passenger services.
Newcastle Airport estimates these improvements could create around 4,400 full-time jobs, deliver an additional 850,000 visitors to the region and add $12.7 billion to the local economy.
Prime Minister Scott Morrison said the investment will re-enforce Newcastle Airports existing infrastructure and economy.
“This investment demonstrates our commitment to the Hunter economy, its workers and businesses and will deliver a jobs boom for the whole region,” Morrsion said.
Minister for Defence Peter Dutton said the investment will support the Airports infrastructure for years to come.
“The upgraded lighting and runway will ensure the airfield remains in line with modern industry aviation standards. This is critically important to support the operation of fifth generation aircraft into the future,” Dutton said.