A Chinese airline will use Victoria's Avalon Airport as a base under a new deal that could allow passengers to fly direct to China.
Victorian Premier Denis Napthine says the agreement, expanding transport operations between HNA Group Hainan Airlines in China and Linfox in Avalon, is terrific news for Geelong and for jobs.
"It initially involves regular air freight services from Avalon to China, which is really important for the government's Food to Asia Program," Dr Napthine said on Friday.
"Then we'll have a look towards passenger flights into the future."
While on a trade mission to enhance ties with Asia, the premier joined Prime Minister Tony Abbott in Shanghai for the signing of a memorandum of understanding to create the international terminal.
The deal commits Linfox to assist Hainan Airlines to begin an aviation service between Australia and China within 18 months using Avalon Airport as a base.
Opposition Leader Daniel Andrews said he had not heard about the memorandum but said trade missions were important, especially if they help to secure jobs.
"Anything that's good for jobs in Geelong, that's something that we should be trying to drive," he said.
Hainan Airlines is China's fourth largest airline with nearly 500 aircraft covering more than 570 domestic and international routes.
