Newcastle International Airport has partnered with property company UK Land Estates for the construction of a business park on its site.
The development would be on land to the south of the airport, and has the potential to create more than 7,000 jobs.
Parliamentary under-secretary of state for transport Robert Goodwill launched the new development with Newcastle International Airport CEO Dave Laws and Newcastle city council leader Cllr Nick Forbes.
The scope of the project includes the development of offices, freight and logistics warehouses and engineering hangers.
The project will be completed in four phases. Phase one will see the development of 175,000ft² of office accommodation; six new office buildings that can accommodate up to 1,000 people.
Goodwill said: "Newcastle is a key UK airport and vital for the North East economy. This new business park offers an excellent opportunity for regional and international organisations."
Laws said: "The location of the Newcastle International Airport Business Park is ideal for businesses which will benefit from the excellent connectivity through the airport.
"The location is great not only for aviation related companies, but also professional services, technology and IT, telecommunications and oil and gas, offshore businesses, who can make use of the excellent connectivity on offer."
South Tyneside Council and LA7 shareholders leader Iain Malcolm said: "The connectivity on offer through the airport opens up many opportunities on a national and international scale and we very much look forward to welcoming organisations to the Newcastle International Airport Business Park."