A $3.11 million project to improve the Mount Beauty airport will "effectively future-proof access" for emergency services, Alpine Council says.
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Mayor Peter Roper welcomed a $1.55 million regional airports program federal government grant and hoped the Victorian government would contribute one-third of the total cost.
The grant will lengthen and widen the runway and enhance lighting, drainage and the helicopter apron.
"Upgrades will support the essential firefighting efforts and allow for 24/7 access for Air Ambulance Victoria fixed-wing aircraft," Cr Roper said.
"The upgrade will include moving the runway approximately 400 metres further to the north west, away from Mount Beauty, which is designed to reduce aircraft noise over the town and enhance safety."
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Cr Roper said the council was grateful to the Australian government for recognising the importance of these upgrades to the community.
"We look forward to the Victorian government also throwing their support behind this essential project," he said.
"This is a fantastic opportunity for a partnership approach involving all three levels of government to deliver a critical emergency services infrastructure to significantly increase the resilience of the region."
The council said the next steps would be liaising with airport stakeholders and the wider community.