The domestic departure Development Levy contributes towards the interest costs of borrowing for major development work at the airport. The original $3 domestic Departure Charge was introduced to meet half of the interest cost associated with the debt raised for constructing the terminal building when it was built in 1992. All of the terminal building was funded by borrowing.

The terminal building was built by the airport company in response to traveller's complaints of the hopelessly inadeqate old building that then existed. The passenger departure charge was introduced as a last resort by the company to enable the building to proceed when efforts to increase revenue through airline charges was resisted on the basis that better facilities were not needed in Palmerston North.

Subsequent improvements have been made to the domestic facilities to match passenger growth, including significantly improved baggage claim, increased check-in queing and public area space, and enlarged cafeteria. This has been funded through further borrowing and the use of retained earnings of the company being reinvested into the facilities.