Australia’s Darwin International Airport has put its $60m terminal expansion plan on hold due to a disagreement with budget airline Jetstar.

Darwin planned to expand the terminal in order to cater for more Jetstar international flights but the airline has not been able to confirm the flight increases due to the tough economic conditions within the airline industry.

Darwin Airport chief executive Ian KEW said that airlines are experiencing falling passenger numbers.

“The conditions probably just weren’t right for both the airport and the airlines to move forward with this expansion,” Kew said.