PM Scott Morrison and Victorian Premier Daniel Andrews said they were committing $5 billion each to the project, with work to begin in 2022.
Qantas on Monday operated the first of four weekly direct flights between Mildura and Sydney, to coincide with NSW–Victoria border lifting.
SA and NT's decision to lift their borders to NSW caused Sydney Airport’s domestic passenger traffic to double in October.
Tourism Whitsundays has launched a new $600,000 ad campaign to encourage tourists to fly into the region’s two airports.
More than 11,000 visitors have arrived in Tasmania since its border restrictions were dropped, according to official figures.
Avalon is set to welcome its first flights for almost nine months after Jetstar announced it’s to relaunch twice-daily services to Sydney.