Civil Aviation Safety Authority grants fledgling budget airline Bonza certification

Budget carrier Bonza gets approval for its aircraft – named Sheila, Shazza and Bazza – to begin flights to 19 domestic destinations within weeks.

Bonza will become Australia’s first new major airline in more than 15 years after gaining approval to operate commercial flights.

The Civil Aviation Safety Authority confirmed on Thursday it had granted the budget carrier an air operator certificate, clearing a path for takeoff within weeks.

Bonza chief executive officer Tim Jordan said it was an “historic moment for Australian aviation as we get ready to launch the country’s only independent low-cost carrier”.

“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 a few.”

Tiger Airways was the last airline to start without the support of a larger airline, and later became part of Virgin Australia. The airline operated from 2007 to 2020. It was closed by Virgin’s new owners, private equity group Bain.

Compass, OzJet, Impulse Airlines and Air Australia have all tried and failed in the domestic market – largely due to the high cost of the industry.

CASA chief executive officer Pip Spence said Bonza went through a rigorous assessment and validation process to ensure it could operate safely in Australia.

“This is a significant milestone and we congratulate Bonza on achieving its air operator certificate,” Ms Spence said. “The CASA and Bonza teams worked collaboratively throughout the application to ensure the airline’s operations met Australia’s high aviation safety standards.”

Bonza will soon put flights on sale through its Fly Bonza phone app, and registered travel agents.

Three new Boeing 737-8s have been delivered to Australia in the past six months in readiness for Bonza’s operations out of bases on the Sunshine Coast and in Melbourne.

Named Sheila, Shazza and Bazza, the 189-seat all-economy aircraft will fly to 19 destinations including Tamworth, Cairns, Newcastle, Port Macquarie, Toowoomba and Avalon. Basic fares are expected to start from $50 for shorter flights.

Bonza Airline will fly to 19 domestic destinations. Picture: Tony Gough

Financed by the Miami-based 777 Partners, plans for the new airline were first flagged in late 2021 with the intention of becoming operational by mid 2022.

But application for CASA approval was only made in April and the regulator requested further information several times before signing off on the cortication this week.

The final paperwork required by CASA was received before Christmas and test flights were undertaken in the New Year.

Last week, Bonza chief commercial officer Carly Povey told The Australian she expected the fleet would be expanded to eight 737-8s within the first year of operation.

The low-cost carrier has deliberately chosen routes unserviced by most other airlines. Others in the airline industry have been sceptical about Bonza’s business model and the use of large narrow-body jets on regional routes.

“I suspect there are good reasons why the incumbents aren’t flying the routes that (Bonza) plans to fly,” said one airline director who did not want to be named, adding that a lack of access to slots in Sydney was “commercial suicide”.

“It was only when Qantas acquired Impulse (airlines) from Gerry McGowan that Virgin got the slots into Sydney,” he told The Australian on Thursday.

Tiger began flying with five aircraft and $10m in funding in 2007, and became profitable three years after it launch.