The president of New Kansai International Airport Co. said Thursday that a third terminal for low-cost carriers will be built at the regional hub near Osaka, with an eye toward completion in the 2016 business year.

Keiichi Ando told reporters that the use of some facilities at Kansai International Airport, including aircraft aprons, will begin in 2015 and that the company will invest some ¥12 billion in the new building.

It will also improve the second terminal, which is being used by budget carrier Peach Aviation, an affiliate of All Nippon Airways Co.

The improvements should allow low cost carriers to serve some 8 million people a year at the airport, which has a 4,000-meter runway and a 3,500-meter runway.

Ando said the number of passengers who use LCCs at Kansai airport will top 10 million in a few years, adding that the company plans to expand the facilities. He also said the third terminal will offer twice as many international flights as the domestic ones.