In 1986 Sunstate purchased a share in Victorian airline, Mildura-based Murray Valley Airlines (MVA), which was established in 1975 but ceased operations in October 1986 due to financial problems. Operations recommenced on 9 November 1986 as Sunstate Airlines (Mildura) on the old MVA routes from Mildura to Melbourne, to Adelaide via Renmark, South Australia, and to Broken Hill, New South Wales. The airline now had two unconnected networks. The following year Sunstate expanded in its original territory when financially troubled Air Queensland gave up its routes in South-East Queensland; Sunstate took over these routes on 1 June. The airline had prepared for the route handover by acquiring more aircraft, its fleet by then consisted of four Nomads (two N24As and two N.22s), three Bandeirantes, three Twin Otters, two Short 360s and a Short 330 in Queensland; and a Short 360 and Cessna 404 in Victoria.