Linfox sees Avalon set for take-off

MELBOURNE could have its second international airport as early as next year, with Avalon operator Linfox saying it is "90 per cent sure" of receiving approval to start building by the end of the year.

If the decision is given the green light by the Federal Government, Linfox says 500 jobs would be created in the initial stages of the project.

Linfox's decision to re-submit its proposal to build the terminal, worth up to $50 million, comes after the Government's surprise rejection of its original application last June.

Managing director David Fox said planning issues had derailed the proposal but only after the airport had signed a deal with Malaysian budget carrier AirAsia X to base its international operations out of Avalon.

"We struck a deal with AirAsia and we were relying on the Federal Government and the State Government to support us. That didn't happen, so we lost (AirAsia X) to Tullamarine," he said.

"There were several issues last time with customs, quarantine, immigration … this time we have crossed off the t's, dotted the i's."

The development would give Melbourne an edge over Sydney, which is still to decide on a site for a second international airport decades after the proposition was first raised.

Melbourne Airport has experienced strong growth. The latest figures mark 27 consecutive months of international passenger growth at Tullamarine, while Sydney's traffic has been in decline since September.

Avalon Airport, which is now hosting the Australian International Airshow, is the home of Qantas' budget carrier, Jetstar, and records more than a million passenger movements a year.

Mr Fox believes that number could triple if the international terminal is approved.

"The Victorian Government is happy to say that it wants a second airport - it is good for the economy, especially in these tough times," he said.

"There are other airlines out there that want to use the low-cost model that we can offer at Avalon."

Linfox is talking to international carriers, including India's Kingfisher Airlines, about using Avalon Airport as an Australian base.

"There are opportunities out there," Mr Fox said.

It is estimated the 7300-square-metre terminal, to the east of the domestic terminal, would take up to a year to build.

"The international terminal would put about 400-500 jobs in straightaway. I can truly say to you, I believe we can see 3000 to 4000 more jobs created here on this facility in relation to maintenance, international (operations)."

Linfox founder Lindsay Fox said airlines would save about $3.4 million a week in costs such as landing fees by basing themselves at Avalon compared with Tullamarine.

"The international airport will eventually happen. The cost differential between landing at Avalon and landing at Tullamarine is just enormous," he said.