Jetstar will continue operating from Avalon Airport after striking an agreement with the Victorian Government and Linfox Group to secure the long-term future of air services to the region.

Under the 10 year partnership, Jetstar has undertaken to increase services from five to seven per day and offer two new destinations from Avalon.

The decision follows a commercial review into the sustainability of Jetstar’s Avalon flying prompted by continuing losses on the Avalon-Sydney route.

Jetstar Australia and New Zealand CEO David Hall said the airline had worked hard to reach an agreement that would allow it to maintain services from Avalon.

“Victoria is proudly the home of Jetstar and we’re pleased to secure the long-term future of Avalon with this partnership,” Mr Hall said.

“Along with the Victorian Government and Linfox Group, we share a vision of a thriving Avalon Airport servicing a growing region. It’s a credit to both parties that they’ve been so willing to support this partnership.

“We understand the vital role our flights play in driving tourism and prosperity in the greater Geelong region and we’re passionate about forging a brighter future from the airport.”

“We’ve listened to the community and responded to calls for more flights to more destinations and we look forward to announcing further details on this soon.

“Although our Avalon services have been unprofitable, we know there is strong commercial potential in the medium to long-term, as population growth gathers pace along the Western corridor and across broader Geelong.

“This partnership with the Victorian Government and Avalon Airport helps us bridge the gap until these services are commercially viable in their own right.”

Jetstar commenced domestic services from Avalon in June 2004 and employs about 50 staff at Avalon Airport in a range of customer service, ground operations, flying crew and engineering roles.

The low fares airline is headquartered in Victoria and provides employment for more than 1,500 people across its head office and two Melbourne airports and operates 480 return flights per week.

In 2013 Jetstar announced the creation of new jobs with the establishment of maintenance and training facilities in Melbourne for its fleet of Boeing 787 Dreamliner.

State of the art equipment, including a flight simulator, has been installed at the group’s flight training centre in Airport West as part of a $100 million investment to support 787 flying.