Jetstar Airways (JQ, Melbourne Tullamarine) is once again in talks with the Victorian Government and the operators of Melbourne Avalon airport, the Linfox Group, over a possible financial package aimed at retaining the airline's presence at the airport through April.

In December 2013, the three parties agreed to an 18-month AUD11 million (USD8.47 million) rescue package for the airport in which Jetstar contributed AUD2.75 million (USD2.11 million).

With 300 jobs on the line, the state government is determined to maintain Jetstar's services out of Avalon and is even considering a bailout in the event an agreement is not reached. As the Qantas (QF, Sydney Kingsford Smith) subsidiary has whittled down its loss-making Avalon services to a multiple daily flight to Sydney Kingsford Smith, any new incentives may require the airline to grow both its frequencies as well as its network.

The Brisbane Times reports Virgin Australia (VA, Brisbane International) subsidiary Tigerair Australia (Melbourne Tullamarine) has already opened dialogue with the Linfox Group about a possible resumption of operations at the airport, should talks with Jetstar fall through. In June 2011, Tiger switched its operations to Tullamarine Airport citing low profitability.

Despite attempts in luring new carriers such as Cebu Pacific Air (5J, Manila Ninoy Aquino International) to the airfield, Avalon has struggled to compete with its larger rival, Melbourne Tullamarine.