Newcastle to Whitsundays flights will soon be a reality after new budget airline Bonza was issued an air operator's licence by the Civil Aviation Safety Authority.
The low-cost domestic carrier went through the aviation authority's rigorous assessment and validation process to ensure it could operate safely, CASA chief executive Pip Spence said on Thursday.
"This is a significant milestone and we congratulate Bonza on achieving its air operator's certificate," she said.
"The CASA and Bonza teams worked collaboratively throughout the application to ensure the airline's operations met Australia's high aviation safety standards."
The budget airline, backed by US investment firm 777 Partners, is expected to travel to 17 destinations across the country, 93 per cent of which are not served by any other airline.
Bonza will connect Newcastle Airport to the Sunshine Coast with four flights per week, and to the Whitsundays Coast twice weekly.
The airline could not confirm exactly when bookings will be available, but said Newcastle would be included in the first wave of flights to go on sale soon.
Bonza's chief executive Tim Jordan described it as a "historic moment for Australian aviation".
"The excitement for what we are about to deliver is palpable and the timing couldn't be better," Mr Jordan said.
"Demand for domestic travel is high and Aussies deserve for travel to be a basic right for many, not a luxury for the few."
Federal Transport Minister Catherine King said Bonza would boost competition in the sector, leading to downward pressure on fares.
"This is a welcome milestone for Bonza and for Australian aviation as the sector continues its recovery from the COVID pandemic," she said on Thursday.
Bonza first announced in October 2021 its plans to launch the new airline in Australia, with the aim of having flights operational by mid-2022.
Those plans were delayed as the aviation authority assessed its application, progressively giving feedback until it was ticked off on Thursday.
Flights and information will be available through the Bonza app.