Scoot, an off-shoot of Singapore Airlines, will lift off from Tullamarine Airport on November 1, 2015 with five weekly cut-price direct flights to Changi Airport in Singapore.
Travellers will be afforded fares up to 40 per cent cheaper than its rivals, with return tickets to the South East Asian port as low as $460 and one-way tickets priced at $229.
'We've proven that cheap is not synonymous with nasty,' Scoot chief executive Campbell Wilson said.
'It's been a long time coming but we can't wait to bring Melburnians and Victorian travellers more choice (and) more fantastic value.'
Tourism Victoria chief executive Leigh Harry said the state's $19.6b tourism economy will benefit greatly from the new partnership.
Mr Harry said Singaporeans are 'sophisticated travellers' and are likely to explore regional attractions like the Great Ocean Road during their Victorian trips.
'Having Scoot in Victoria means greater competition, which can only benefit consumers in the form of more choice and lower prices,' Mr Harry said.
Scoot will have an assembly of new Dreamliner 787 planes, which are fitted with wifi.
The fledging airliner, established in 2011, launched Sydney services in 2012.
Since then the Harbour city has seen a year-on-year increase of Singapore visitors by 32 per cent.
Scoot also operates out of the Gold Coast and Perth.
Travellers can connect to more than 71 destinations from Singapore, including Hong Kong, Tokyo and Bangkok.
To celebrate its launch, Scoot is offering return economy my fares from Melbourne to Singapore for $300.
Its comfort service, ScootBiz, which is described as better than its competitors' premium economy, will cost $600.
The 24-hour sale starts 3pm today and closes tomorrow at 2.59pm.
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