On 2 June 2010, a Cessna Aircraft Company 172R aircraft (C172), registered VH-IMV, was cleared to line up and hold on runway 17R at Moorabbin aerodrome, Victoria. On board the aircraft were an instructor and student, with the intention of conducting a training flight to Essendon aerodrome.

After processing a number of other aircraft, the controller cleared a Cessna Aircraft Company 152 aircraft (C152), registered VH-IVT, for a touch and go on runway 17R. The C172 continued to line up and hold at the end of the runway without making any further transmissions.

A Beech Aircraft Corporation 58 then reported ready for runway 17R at taxiway Alpha 1. The controller noticed the C172 lined up and instructed the C152 on final to go around. When the C152 was upwind, the C172 was cleared for takeoff.

Although Moorabbin was a General Aviation Aerodrome Procedures (GAAP) aerodrome at the time of the occurrence, runway separation standards were required to be applied. There was a loss of separation assurance.

Airservices advised that they would introduce the use of flight progress strips for Moorabbin control tower during the second half of 2010. They also advised that they planned to conduct an ergonomic study of the Moorabbin control tower layout.