Virgin Blue has opened its first freight facility at Tasmania's Hobart airport, which is expected to handle 1.2 million kilogramme's of airfreight a year, Australia Transport News reported.

The 1,000 square metre facility, costing A$500,000 (US$389,642), is the airline's first airfreight initiative in Australia. The facility has a cool room for refrigerated cargo and will handle freight currently moving through the passenger terminal.

Virgin Blue now operates 29 direct flights a week from Melbourne to Hobart, 14 between Hobart and Sydney and seven services between Brisbane, Adelaide and Hobart.