Australian airports need at least Aus$ 13 billion (RM41.46 billion) to cope with increased demand from Asia and to reduce congestion over the next decade, Transport Minister Anthony Albanese said at the Asia Pacific Aviation/Aerospace Leaders Summit on Monday.

"As Australia's engagement with Asia continues to grow, there will be many challenges and questions about how best to develop the aviation industry and the infrastructure that supports it," China's Xinhua news agency quoted Albanese as saying.

"For example, despite substantial investment, Australia's privately-operated airport network is experiencing increasing congestion," he said.

"Estimates suggest that at least 13 billion (AU dollars) will be required over the next 10 years alone to tackle this."

In the speech, Albanese also pointed out by 2020 almost half of all inbound arrivals would be from the Asia-Pacific region.

"It is already, of course, the most populous region but before long it will also become home to the world's largest middle class, " he said.

Last year, Australia hit a record figure of almost 30 million people flying in and out of the country, driven largely by growth from Asia.

According to him, for example, a decade ago, only three Chinese carriers offered just 11 services per week from China to Australia, while none of Australian airlines flew there. Now there are 82 weekly flights between two countries, with both QANTAS and Jetstar flying into Chinese destinations.

"As aviation demand grows, so does the need for better road/ rail links connecting to our airports," he said.