The airport has described the challenging upgrade as being like “open heart surgery” but said the new process would eventually reduce the number of lost items.

It significantly follows 170 flights into and out of the NSW capital being cancelled last week just as NSW’s school holiday getaway began.

Rex has dismissed Whyalla City Council’s claim that it could not afford to modify its airport terminal as a “deceitful and deceptive” assertion.

The upgrades, partly funded by a $55 million grant from the federal government, will see Newcastle overhaul its international terminal, including passenger and border processing facilities, to better support international flights to and from the airport.