Newcastle Airport will 'fight tooth and nail' to retain direct flights to Auckland despite the collapse of Virgin Australia.
The increasingly popular Auckland route is among the carrier's Newcastle flights, which account for 25 per cent of passenger numbers at the airport.
Airport chief executive Dr Peter Cock said it was too early to say how the appointment of an administrator would impact on Virgin's Newcastle services, however, he conceded it could potentially be significant.
"I think it will be some time before we can say for certain what the domestic aviation industry will look like," he said.
"However, without a competitive landscape, the pressure bought to bear on consumers and businesses like ours will be considerable."
Virgin and Jetstar discontinued flights to Newcastle in the middle of last month and Qantas shortly afterwards.
The airport, which generated $34 million last year, is presently operating at minimal capacity.
Its monthly operating costs have been reduced by more than half by redeploying full time staff to maintenance projects around the airport.
But Dr Cock said he remained optimistic about the airport's ability to rebound once the pandemic passed.
"Upgrading our runway to Code E status and upsizing the capacity of our terminal to match this increase in demand is a regional priority," he said.
"We want to give our region real hope and optimism at a time it is most required."
While most aviation activity at the airport has ground to a halt, Fly Pelican continues to fly to locations including Dubbo, Ballina, Canberra and Sydney.
The NSW Opposition has called on the state government to commit to economic assistance for regional councils to ensure long term viability of small council-operated airports.
"Regional air travel provides an invaluable contribution to the well-being of regional and remote communities across Australia," shadow minister for regional transport David Harris said .
A government spokesperson said it was currently considering how best to continue to support and sustain the local government sector during a "very difficult time'.
Port Stephens mayor Ryan Palmer said Newcastle Airport was the key to unlocking the region's full potential.
"This year's crises - bushfires, drought and now the coronavirus pandemic - have hit hard and there's never been a more critical time to support regional NSW," he said.
"I would wholeheartedly support and welcome any assistance from the State Government for Newcastle Airport in order to restart our region and get our local economy back on its feet in the recovery from all these recent challenges."
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