Tiger Airways has selected Melbourne Airport as the base for its Australian operations.

Tiger Airways' decision is a major coup for Melbourne and Victoria, with Melbourne selected after detailed discussions between Tiger Airways and the airports and governments of a number of Australian states and territories.

The airline will base its Australian domestic operations in Melbourne - providing a significant new addition to the 12,000 staff currently located within the Melbourne Airport precinct.

Acting Melbourne Airport CEO Kirby Clark said Tiger's decision was a testament to the growth opportunities Melbourne had presented to the low-cost airline, along with a strong 'Team Victoria' approach the Victorian Government and Melbourne Airport had taken with their proposal.

"We are delighted that Tiger has selected Melbourne Airport as the base for its Australian operations. This is a major win for this airport, this city, and this state," said Mr Clark. "Tiger being based in Melbourne will greatly support Victoria's sporting and cultural events calendar, which is conversely a key reason it chose to base its domestic operations here," he said.

"Tiger's decision reflects on the innovative, cooperative approach we take to working with our current and potential partners. We continue to provide stable low international and domestic airline charges - the lowest of any airport in Australia," he said.

"We will now work closely with Tiger Airways to prepare for the commencement of the airline's lowcost operations, which will be supported by our excellent car parking and hotels, and only 20kms from the CBD," said Mr Clark.

In speaking of the reasons Tiger selected Melbourne, Tiger Airways CEO Mr Tony Davis said: "Tiger was particularly attracted to Victoria because of its skills base, the flexibility offered by Melbourne Airport, the State's approach to marketing and major events, as well as the positive approach to the negotiations by the State Government and Melbourne Airport."

"We are a proven low cost carrier with Tiger-like plans for Australia and I am sure the Victorian and Australian public will welcome the competition we will bring to the market," said Mr Davis.