Budget airline Bonza has been cleared to fly in Australia with the Civil Aviation Safety Authority issuing it an air operator's licence.
The low-cost carrier went through the 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 in a statement.
"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'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," he said in a statement.
"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 in a statement on Thursday.
Bonza first announced in October 2021 its plans to launch in Australia, with the aim of operating flights by mid-2022.
Those plans were delayed as the aviation authority assessed its application, progressively giving feedback until it was ticked off on Thursday.