Budget airline Bonza already has expansion plans as it approaches takeoff

Budget airline Bonza is getting closer to regulator approval to fly and already has plans for an expanded fleet.

Bonza, the private equity-backed budget airline hopeful, says it has an ambitious plan to expand its fleet of Boeing 737-8s from three to eight in its first year of operation, despite still awaiting regulatory approval to start flying.

The Civil Aviation Safety Authority told The Australian it was continuing to “work closely” with the airline’s team on its application for an air operators certificate lodged nine months ago.

A CASA spokeswoman said the regulator had received key documents from Bonza before Christmas that should allow the airline to complete the process.

“CASA will be able to make a final decision on the AOC once proving flights have been completed in early January,” she said.

The purpose of the proving flights was to allow CASA inspectors to test the airline’s systems and processes, to demonstrate its readiness for entry into service.

Bonza has already taken delivery of three Boeing 737-8s – formerly known as Max 8s – and christened the aircraft Sheila, Shazza and Bazza.

Another five aircraft were expected once commercial flights begin on 27 routes involving 17 destinations such as the Sunshine Coast, Port Macquarie, Tamworth, Cairns and Melbourne.

More than 90 per cent of the routes targeted by Bonza are currently not serviced by any airline. Picture: Tony Gough

More than 90 per cent of the routes are currently not served by any airline and 96 per cent are not flown by a low-cost carrier.

Aircraft supply was not considered to be a problem for Bonza as its Miami-based owner, 777 Partners, has lodged orders for 134 Boeing 737-8s in the past two years at bargain rates. But in an apparent attempt to free up some cash, 777 Partners recently sold a handful of new 737-8s to Babcock & Brown Aircraft Management, including two built for Bonza.

Asked about the sale on Thursday, Bonza chief commercial officer Carly Povey said it would not affect the carrier’s plans to launch services.

“Bonza continues to plan towards having a minimum of eight aircraft in our first year of operation, subject to regulatory approval,” Ms Povey said.

The fleet of narrow-body jets would put Bonza just ahead of Rex, which currently has seven Boeing 737-800s flying major city routes.

Bonza’s 737-8s would seat 189 passengers in a single class and fares are expected to cost $50 for flights of one hour, and $100 for longer services.

Bonza chief commercial officer Carly Povey.

The airline is in a race with Virgin Australia to become the first domestic carrier to operate the 737-8 down under. Virgin Australia has eight of the aircraft on order and is preparing to take delivery of the first in February. It has plans to use the jets on domestic and international services.

The 737 Max-8 is attractive to airlines because of superior fuel efficiency and lower carbon emissions than its predecessor, the 737-800.

Carriers are confident passengers will not boycott the aircraft after an intensive safety overhaul during a global grounding from March 2019 to December 2020.

The grounding followed two crashes in five months – in Indonesia and Ethiopia – that killed 346 people. Both crashes were found to be related to a new feature added to the aircraft by Boeing, known as the manoeuvring characteristics augmentation system, that ­affected flight control.

777 Partners managing partner Josh Wander and Stan Deal, chief executive of commercial aeroplanes with the Boeing Co. Picture: Bloomberg

In a $3.6bn lawsuit in the US, Boeing admitted to keeping information about MCAS largely hidden from US regulator the Federal Aviation Administration, and omitted details from pilot training manuals. Major software changes and training overhauls were ordered before the Max 8 was allowed to return to the skies.

777 Partners in October also emerged as a shareholder in A-League club Melbourne Victory, investing between $5m and $10m for a minority stake that valued the club at between $40m and $50m.