Melbourne is soon to get its second international airport.
Avalon Airport will be the new home for AirAsia after a 10-year deal was signed for the budget carrier to shift operations from Melbourne Tullamarine.
New terminal facilities will be built and funded by Victoria and the federal government to handle an expected increase of more than 200,000 passengers.
AirAsia Group CEO Tony Fernandes said lower operating costs at Avalon will mean lower fares.
He also hinted more international routes across Asia could become a reality.
"Our history's always been we start with one destination, but really Indonesia, China, India, they'll all be places that we'll be looking to bring in, and Thailand obviously, and the Philippines."
Fernandes said the longer distance to get to the city would not be a major issue thanks to good roads and direct bus routes.
Avalon Airport will be up and running as an international airport by the end of 2018 and Victorian employment minister Ben Carroll said he hopes it will be a catalyst for more international airlines.
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