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Avalon Airport will become Victoria's second international airport and build a new $15m terminal up to 10,000 square metres to cater for the customs and security requirements of overseas flights along with space for retail and duty-free.
The Federal Government will amend the terms of the airport's lease to upgrade it from the current domestic-only status.
Avalon Airport is located 55km south-west of the Melbourne CBD, sitting nearest to the regional Victorian centre of Geelong.
Avalon Airport chief executive Justin Giddings welcomed the move, saying "This decision cements Avalon's future as Victoria's second major domestic and new international airport."
"With this decision, we can now get on with the job of securing an international carrier and building international passenger facilities."
Still up in the air, so to speak, is the proposed rail link from Avalon to the Geelong-Melbourne line. The Victorian government has pledged $3 million over two years for planning and development of the project, but state premier Ted Baillieu said the government would welcome federal assistance to build the link.
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