Jetstar launched its service from Busselton in Melbourne with a five-day fare sale, offering passengers one-way tickets for only $ 89.
The first flight will take off on March 25, making the low-cost carrier the first airline to connect the east coast of Australia and the Margaret River region.
Direct flights from Melbourne to Busselton will operate Monday, Wednesday and Saturday with over 1,100 seats available weekly.
The new service is expected to contribute over $ 40 million to the WA economy over the next three years, with over 60,000 visitors at the time.
The managing director of the Jetstar group Gareth Evans said that the airline was expecting a strong demand from the Melbournians who wanted to explore the destination.
"Direct flights from Melbourne will save customers on the east coast three hours drive from Perth, putting the destination a short distance away for a short stop," he said.
"And for residents in the south-west it will open up the possibility of a mini-break on the east coast with direct access to sports, culture and numerous shops offered in Melbourne."
The news is a big step forward for the city of Busselton and its project at the Busselton Margaret River airport.
The negotiations with Jetstar had been approaching for two years and there had been much speculation about the incentives offered by the Municipality to guarantee the agreement.
The city Mayor of Busselton, Grant Henley, said that while the Busselton Margaret River Airport upgrade project has achieved many milestones since planning began in 2010, ensuring a regular passenger transport service to the facility it was particularly exciting.
"This new and direct route to Melbourne opens up a world of possibilities for local, national and international travelers and will generate revenues and create jobs in the tourism and tourism sector throughout the South West and the state in the broad sense", he said. He said.
The agreement will not be the catalyst for the construction of a new passenger terminal at the airport, but has raised demands from the Vasse MLA Libby Mettam and the Warren-Blackwood MLA Terry Redman for the state government to maintain its original promise.
At today's announcement, regional development minister Alannah MacTiernan said the state government would invest $ 3.265 million to upgrade terminal infrastructure to enable the launch of Jetstar's air service in March.
"Having a direct route test in the south-west from the eastern states could be a turning point for the entire region, opening up new markets and providing a platform for the development of new activities and job creation", he has declared.
The federal member of Forrest Nola Marino welcomed the announcement and stated that the agreement will not only benefit Busselton, but the entire Southwest.