Hainan Airlines (HU, Haikou) is set to operate commercial passenger and freight services to Melbourne Avalon airport following the signing of a Memorandum of Understanding (MOU) between the Linfox Group and China’s HNA Group in Australia last week.

The MoU will allow the two parties to commence formal planning for the flights between China and Australia, expected to begin in the next eighteen months, as well as to explore other opportunities.

Avalon Airport’s Chief Executive Officer, Justin Giddings said: “The MOU represents an enormous opportunity for Avalon Airport and the region. We will work closely with the HNA Group and the Australian and Chinese Governments over the coming months to remove barriers and ensure the success of future operations.”

China is Australia’s strongest growth market in terms of international tourism with visitor spending in Victoria alone forecast to grow by 6.3% per annum over the next nine years.

"Perhaps the most exciting aspect of the MOU signing is the potential for freight transport between Avalon Airport and China - this would give Geelong-based producers direct access to the Chinese market," Geelong Mayor Darryn Lyons told a gathering of Chinese and Australian bureaucrats.

The MoU also has provision for the joint construction of an international terminal and infrastructure at Avalon Airport.