Victorian premier Ted Baillieu says the state is capitalising on Asia's unprecedented growth.

RAAF flare drop in Vic cancelled

Published: 06:17:37 AM, Sun 24 February 2013 UTC

The planned flare drop over Port Phillip Bay has been cancelled because of technical problems with the RAAF plane.

The airforce says the C-130J Hercules, which was due to fly over Port Phillip Bay towards St Kilda around 8pm (AEDT) as part of an anti-terrorism exercise, has returned to its base at Richmond.

The flare display was to recognise this month's 10th anniversary of continuous deployment of Australian Hercules to the Middle East, the longest such deployment in RAAF history.

The C-130J is to be part of the Australian International Airshow at Avalon Airport from Tuesday.

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