Qantas Airways Limited
(ASX:QAN) owned Jetstar will stay at Avalon Airport for another 18 months under a deal negotiated by the Victorian government.
Under the multimillion dollar agreement reached with Jetstar and airport owner Linfox, the airline will remain at Melbourne's second major airport until at least April 2015.
It's believed the government will put in most of the $5.5 million, with Jetstar and Linfox each contributing $2.75 million, according to media reports.
Aviation Industry Minister Gordon Rich-Phillips says the deal secures Jetstar's five flights a day.
The deal comes after concerns were raised last week that Jetstar was considering leaving Avalon.
Qantas generated a net profit of $6 million in fiscal 2013.
