The budget airline confirmed it would reinstate the link between Canberra and Melbourne on Monday, after three years of negotiations.

The first 2000 one-way tickets between Canberra and Melbourne will go on sale for $59 from 11am on Thursday – and the first 200 bookings through tigerair.com.au will receive their fare for free.

How? Tigerair will refund your base fare back to your original form of payment (minus the booking and service fee, as well as the cost of baggage, seat selection, meals or travel insurance).

The carrier will start flying daily between Canberra and Melbourne from December 8.

Tigerair's Melbourne to Canberra flight will depart at 10.30am on Monday, Tuesday, Wednesday and Saturday and arrive in Canberra at 11.35am.

On Thursday, Friday and Sunday it will depart at 5.35pm and arrive at 6.40pm in Canberra.

The new service from Canberra to Melbourne is scheduled to depart at 12.05pm on Monday, Tuesday, Wednesday and Saturday, arriving in Melbourne at 1.15pm.

Flights on Thursday, Friday and Sunday will leave Canberra at 7.20pm and arrive at 8.20pm.

Tigerair Australia's head of communications Vanessa Regan said the service would provide an extra 2500 visitor seats per week through both airports and add about $17 million to the Canberra economy.

"We have witnessed overwhelming demand, particularly from the Canberra market, for a low-cost airline on this route and we are proud to have responded," Ms Regan said.

But don't worry if you fail to nab one of the first seats.

Tigerair said it will regularly have $69 fares available between the two cities.