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Jetstar plans expansion at Avalon after signing new 10-year deal with Victorian government

written by australianaviation.com.au | April 27, 2015

Jetstar passengers disembark at Avalon Airport.
Jetstar passengers disembark at Avalon Airport.

Jetstar is planning to launch new routes and add extra flights to Sydney from Avalon Airport as part of a new deal with the Victorian Government.

Premier Daniel Andrews says the state government has signed a 10-year agreement with the Qantas-owned low-cost carrier to secure the future of Avalon Airport.

The Victorian government will contribute $12 million over the decade-long agreement, while Avalon Airport owner LinFox will tip in $14 million over the same period to keep Jetstar flying to the airport.

Daniel Andrews at Avalon Airport announcing the Victorian government's deal with Jetstar. (Daniel Andrews/Twitter)
Daniel Andrews at Avalon Airport announcing the Victorian government’s deal with Jetstar. (Daniel Andrews/Twitter)

The latest deal, which will maintain the only regular public transport (RPT) service at Avalon Airport, was struck as Jetstar’s 18-month contract signed with the previous state government was due to expire at the end of April.

“This will lay the groundwork for a potential future expansion that will cement Avalon Airport as Victoria’s second major passenger airport, including with future international carriers,” a statement from the Premier’s office said.


Andrews said Jetstar would increase its current schedule to Sydney to seven flights a day, from five currently, and add two new domestic destinations over the next 18 months.

“We’re securing a bigger and brighter future for Avalon and saving up to 200 local jobs,” Andrews said in a statement on Monday.

“This partnership means more flights to more destinations, and will create jobs for Geelong and the region.”

Jetstar Australia and New Zealand chief executive David Hall said the airline would be working hard to ensure its Avalon Airport services would eventually be profitable.

“Along with the Victorian Government and Linfox Group, we share a vision of a thriving Avalon Airport servicing a growing region. It’s a credit to both parties that they’ve been so willing to support this partnership,” Hall said in a statement.

“Although our Avalon services have been unprofitable, we know there is strong commercial potential in the medium to long-term, as population growth gathers pace along the Western corridor and across broader Geelong.

“This partnership with the Victorian Government and Avalon Airport helps us bridge the gap until these services are commercially viable in their own right.”

Avalon Airport chief executive Justin Giddings said it was a great day for the airport.

“10 years, more flights and most importantly more destinations. Secure future for staff and region,” Giddings posted on Twitter.

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Comments (11)

  • Dane


    There’s real potential to develop Avalon into major domestic an international hub. All it needs is the transport infrastructure (i.e. high speed rail link) to be built and it would be an excellent alternative to Tullamarine.

  • Des


    So they were struggling to make a go of it with 5 daily flights to Sydney and now they are increasing to 7?

    I do believe there is good potential at Avalon but it would be good to know how many taxpayer dollars are going toward this venture?

  • rob


    Avalon has huge potential, not just as a domestic or international hub but add the forgotten F1 race track (come on David Fox), a few hotels and a casino and you have an amazing holiday destination. High speed rail link before Tullamarine that would be a joke but easier to acumplish.

  • Dane


    Probably too many. The big problem will drawing other airlines away from Tullamarine. It’s pointless paying an airline to fly to a destination and hoping competition will come when they have no financial incentive to do so. That, and the terminal at Avalon really isn’t what you want premium airlines flying high paying customers to. If LinFox make the investment (and maybe the state and federal government as well), and build more accommodating facilities, Qantas and Virgin might start flying there.

  • Adrian


    Not logical Captain

    Better to develop regional services..

  • maria


    can’t wait for flights to fly back to Brisbane from Avalon

  • Keigo Namba


    It would good to have flights to Gold coast and Tasmania.
    Budget airline like Cebu airline and Air Asia and Scoot to fly in and out of Avalon would be a great idea.

  • John Grier


    Cebu Pacific would be perfect for Avalon. They could fly in from Manila & then continue onto New Zealand.

    With 436 seats on their A330-300, their economies of scale, would allow them to sell seats cheaper than anyone else.

  • David W


    12 million to save 200 jobs, increase from 5 fights to 7 flights, from Jetstar, no Tiger ( a Virgin owned company), QANTAS Domestic? Doesn’t sound like a sound fiscal decision. If hey put in the infrastructure, like a train line extension and Terminal Building. Wouldn’t that increase the viability of the airport. The fanciful dream of the Victoria, Premier’s Office of attracting International Carriers

  • Adrian


    Probably be better putting the money in to Latrobe Regional Airport with its adjacent railway it can serve Pakenham to Sale. This would save lots of hassle getting past the Melbourne sprawl to a significant airport.

  • Louise


    Please give us back the Brisbane to Avalon service!!

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