THERE has been no resolution in the negotiations between Newcastle Airport and Jetstar on landing fees, despite current contracts expiring on Tuesday.
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Jetstar made the behind-the-scenes stoush public, revealing it would not pay the 50 per cent increase in landing fees proposed by the airport.
But Newcastle Airport's chief executive Paul Hughes defended the rise, saying it was the first increase in 10 years for the low-cost carrier.
The Newcastle and Port Stephens council-owned airport is increasing landing fees by $1.70 a person.
This would allow the airport to cover the full cost of landing a Jetstar flight and stop operating landings at a loss.
Jetstar Australia and New Zealand chief executive David Hall slammed the price increase, warning it could result in increased ticket prices and decreased services to the airport.
The contracts between both parties detailing landing fees expired on September 30, meaning Jetstar is currently operating flights from the airport without a contract or agreement.
An airport spokeswoman said the stoush would not affect passengers and negotiations were ongoing.
Newcastle Airport was set to pour concrete for the first stage of its $11.1 million airport expansion yesterday, October 1.
