Budget airline Scoot, a subsidiary of Singapore Airlines, has begun a daily service between Sydney and Singapore.
Scoot's first Boeing 777 arrived at Sydney Airport last week.
The airport's chief executive officer, Kerrie Mather, said the new carrier would generate A$146 million a year for the New South Wales economy and bring close to 400 passengers to Sydney every day.
"We've already seen low-cost carriers stimulating markets here and internationally," Mather said in a statement.
"Low-cost carriers on long-haul routes are making it more affordable than ever for Australians to see the world."
