Melbourne reopens as world's most locked-down city eases pandemic restrictions

"This is a wonderful day - Australia is ready for take-off," Prime Minister Scott Morrison said shortly after the Qantas announcement. A quarantine-free travel bubble between Australia and Singapore could operate from next month, Morrison said, if an agreement is reached as expected.

A long lockdown

Even with Delta outbreaks across Australia's southeast from late June, coronavirus numbers are still far lower than those of many comparable nations, with some 152,000 cases and 1,590 deaths.

The state of Victoria, of which Melbourne is the capital, reported 2,189 new local COVID-19 cases and 16 deaths on Friday, making it the centre of the Delta outbreak in Australia.

Daily cases in New South Wales, home to Sydney where the Delta variant was first detected in June, dropped slightly to 345. The state recorded a further five deaths.

With a once-stuttering vaccine rollout gaining momentum, authorities no longer plan to rely on extended lockdowns to suppress the virus.

It has been an arduous period, especially for those in Melbourne running a business.

"We've been open for a year, and this is our fourth lockdown. It's been very difficult," said David Boyle, the head chef at the up-market Farmer’s Daughters restaurant in Melbourne.

Under more relaxed rules, restaurants and cafes can reopen with up to 20 people indoors and 50 outdoors - all of whom must be vaccinated - while 10 guests can gather at homes. Masks will remain mandatory.

The reopening will be a boost for Australia's A$2 trillion ($1.5 trillion) economy after recent lockdowns pushed it to the brink of a second recession in as many years.

At Melbourne's once bustling Journal Cafe, waitress Sullivan Kovacs said business was still modest on Friday and that customer numbers would increase once office workers and trades people returned to the city en masse.

"A lot of the traffic comes from people working in the city, and a lot of the tradies haven't gone back to work yet," Kovacs said. ($1 = 1.3259 Australian dollars)