The new terminal at Palma airport.

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As the new terminal at Palma airport approaches its third anniversary, airport directors yesterday unveiled a massive investment and expansion project, which has been designed to ensure that Son San Joan can meet the demands of the tourist industry and the local population, which are growing every year. The nearly 4'000 million peseta project will include the construction of new access roads, a satellite terminal for inter-island flights, new links to reduce distance and time between gates and checking-in, and the complete reformation of the old terminal A building. Palma airport chiefs said yesterday that work on renovating Termninal A will start within the next couple of weeks. Terminal A was the main hub of the old airport and it is now set for a new lease of life, handling the overspill expected from the new terminal in the summer. This year over 20 million passengers are expected to fly into and out of Palma airport - making this year the busiest year in the airport's history. Phase one of terminal A's resurrection will take place on the ground floor, which will be transformed into a departures area. A total of 12 fingers are to be installed and once completed, a further five double fingers will be installed for larger planes. The second major project for the airport of the millennium will be the construction of a satellite terminal, near the control tower, for short-haul flights and inter-island hoppers. The short-haul terminal will have direct access to the check-in area, thus removing the need for passengers to spend more time walking to their flight than they will actually spend on the plane.