Having struck a deal with Malaysian budget airline carrier AirAsia, Linfox managing director David Fox told The Age the $50 million proposal would employ more than 500 people immediately, and give Melbourne a competitive edge of Sydney, which is still trying to decide a location for its second international airport.
Upon completion, it’s expected the redeveloped Avalon Airport could employ between 3,000 and 4,000 people.
AirAsia would join Qantas budget carrier Jetstar, by basing itself at Avalon Airport.
Mr Fox said the number of passenger movements per year could triple to about 3 million, if the development is approved by the Federal Government, which is reviewing the application.
The 7,300 square metre terminal would take up to a year to build.
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, instead of Tullamarine (Melbourne Airport).