Transport Secretary Patrick McLoughlin visited the site to mark the official start of construction with a ground breaking ceremony today, 22 January.
Works on the £110 million project include a new canopied entrance and exit plaza as well as expanded security search, baggage reclaim and immigration areas.
The amount of retail and dining space will also be doubled while departure gates are to be improved.
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In addition, a new passenger boarding pier will be developed along with extensions to the airfield taxiways.
It is understood McL&H will work alongside Buckingham Group Contracting and Whitemountain on the project.
The redevelopment will be completed in 2017.
Nick Barton, CEO of LLA, said: "The appointments of McLaughlin & Harvey and Buckingham Group Contracting, alongside Whitemountain, represent a significant milestone for LLA. With construction now well underway, passengers will quickly see the airport being transformed."
David Larmour, Construction Director at McL&H, said: "The works, which are to meet the increased demand from passengers, will last approximately two years and will reorganise the existing facilities and add additional space to retail and airside passenger capacity."
(LM)
