Councillors are due to be briefed on Wednesday night about an options paper reporting on the future of the airport, after The Courier last week revealed costs for a redevelopment proposal may be anywhere between $30 and $40 million.

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City of Ballarat has received a $5 million grant from the federal government's Regional Airports Fund and has matched that amount.

Managing director of Field Air Peter Mackay is a contributor the letter, sent to council and other business bodies in Ballarat.

The aerial fertiliser, spraying and fire-fighting Field Air has had a base at the airport since 1963.

Mr Mackay says investing the $10 million council already has would fund extending the existing runway (from 1245m to around 1700m) and pay for strengthening of the tarmac and base.

"This airport deserves to have more life, more industry brought into it; it deserves to be lifted into the new century," Mr Mackay said.

"Everywhere else has done it. Albury airport has done it, Bendigo are doing it. It's happening all around the country.

"The grants provided by the federal government under the Regional Airport development scheme is exactly for that: it's to inject some life into country airports, and to provide people in towns like Ballarat the availability of good Regional Airport facilities, which will allow them to fly to Sydney, fly to Adelaide, fly to Brisbane, wherever, rather than having to go into capital cities to do that."

The letter's authors do not dispute the figure quoted in The Courier article, arguing it should be seen in the context of future investment.

"The projected $32-$37 (million) estimated total costs noted in Saturday's Courier should be viewed as a longer-term master plan budget for the Ballarat airport," the letter says.

"Further Regional Airports Program grants are scheduled to be available through to 2022-3. Bendigo have utilised monies provided under the program to improve facilities at Bendigo Airport .

"Qantas Link now operate a daily service from Bendigo to Sydney with plans to double the service and extend flights to Brisbane and Adelaide from Bendigo."

Some critics have questioned the long-term sustainability of Bendigo's interstate flights, the need for a larger airport given Ballarat's proximity to Avalon and Melbourne, and the viability or need of a bigger air-freight service out of BWEZ.

The letter says such views are short-sighted.

"Not understanding the opportunity and potential of the airport has left Ballarat behind. Bendigo in contrast has grasped the commercial opportunities developing their airport to allow the city's business and tourism to benefit from the operation of Qantas Link flights to Sydney and the prospect of further flights to Brisbane and Adelaide," it says.

"The City of Ballarat could be left behind in the real world of commercial opportunity, air travel and tourism if it does not embrace the financial support provided by the program."

Chair of the Ballarat Region Tourism board Iain Gunn says after COVID, council needs to investigate development.

"Anything that will make it easier for people to get to Ballarat can only be good for the visitor economy and the economy generally in our town," he says.

"Whether that involves privatisation, or enlisting private enterprise in the development I don't know, but I believe the council needs to find a way to make this happen. There's a lot of talk about making a business case. You look no further than Avalon Airport to see how an astute businessman has turned that opportunity into a solid commercial success."

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