Aviation Attraction Fund

The Tasmanian Government committed $5 million over four years to the Aviation Attraction Fund to enable Tasmania to be agile and swift in leveraging opportunities by partnering with Tasmanian airports to increase capacity in the Tasmanian market.

The objective of the program is to support economic growth and creation of jobs and opportunities for Tasmanians by building inbound capacity and patronage to Tasmania.

The fund provides up to:

• $2 million (now fully allocated) to open new domestic routes, extend existing seasonal routes and grow capacity on existing domestic routes, and
• up to $3 million for direct international flights.

The Fund opened for applications at 2:00pm, 13 January 2025. Applications are considered in order of receipt until funds for the relevant stream are fully committed.

Available funding

Funds may be applied to initiatives designed to build capacity and demand including, but not limited to

• sharing commercial risk of services, such as cost offsets and seat subsidies
• demand-generating strategies, including in-market promotion and media
• an agreed minimum revenue guarantee.

Funding is available under two streams:

1. International direct air access

This stream is open to current and/or new international direct air access that will support delivery of the program objectives.

Applications are to be made by a Tasmanian airport and supported by an airline. All applications must be jointly funded by both the Tasmanian airport and the airline.

A total of up to $3 million is allocated to this stream.

2. Domestic routes (now closed)

The domestic stream provided funding to help establish new domestic air routes, extend seasonal services, or increase capacity on existing routes. It required joint applications from Tasmanian airports and airlines, with both parties co‑funding at least 50 per cent of project costs.

Up to $2 million was available to support initiatives that expanded Tasmania’s domestic aviation capacity. The domestic stream is now fully subscribed. Applications for domestic routes are no longer being accepted.

Routes funded to date

• Hobart – Newcastle new seasonal direct route (commenced December 2025)
• Launceston – Canberra new direct year-round route (commencing May 2026)
• A third approved domestic route proposal will be published once formally announced.

This section will be updated as announcements are made.

What has changed since the program launched in January 2025?

In November 2025, the Tasmanian Government amended the Aviation Attraction Fund guidelines to allow for proposals for capacity increases on existing domestic routes, unlocking tens of thousands of more airline seats to Tasmania, boosting visitation, jobs and our regional visitor economy.

Administrative changes to the Guidelines in October allowed for multi-year proposals and funding paid in advance, where justified, better supporting the establishment and sustainability of new routes by providing certainty to airlines.

As of February 2026, the domestic stream funding has been fully committed. Only applications under the international direct air access stream remain eligible.

How to apply:

1. Read the Aviation Attraction Fund Guidelines (PDF 524.0 KB) for further information on submitting an application, including eligibility criteria, minimum requirements and provision of supporting documentation.
2. Submit your application for Stream 1: International direct air access through Smarty Grants.

Questions?

Please email aviationfund@stategrowth.tas.gov.au