Budget airline Bonza hopes to launch its Melbourne base within weeks after successfully flying its first passenger flight on Tuesday.
Bonza flight AB777 took off from its Sunshine Coast base on Tuesday morning, bound for the Whitsunday Coast.
The low-cost carrier, which will fly between mostly regional destinations, is the first new airline to launch in Australia in 15 years.
Chief executive Tim Jordan said he hoped to make air travel cheaper and easier for people by flying new routes.
"I think in any industry anywhere in the world, additional competition is positive for downward pressure [on prices]," he said.
Bonza's initial schedule includes flights from the Sunshine Coast to 11 destinations, including Cairns, Rockhampton, Coffs Harbour and Mildura.
Melbourne soon, Sydney too expensive
Mr Jordan said he was keen to launch the Melbourne operations, where Bonza's other aircraft will be based.
"We are taking delivery of two additional aircraft, one next month [and] one a month after that," he said.
"We're looking forward to doing that and putting those routes on sale in the coming weeks."
Mr Jordan said Sydney was not a viable destination for the low-cost carrier with the airport's current fees.
"They're not as keen to come to the table … or maybe they don't see the opportunity," he said.
"We're quite enthusiastic about Sydney, but it has to be at the right pricing."
A Sydney Airport spokeswoman said it would be "delighted" to have Bonza operating there.
"The unfortunate reality is that Sydney Airport is the most constrained and regulated airport in the world, which means we have very limited capacity during peak periods," a spokeswoman said.
"Demand during peak periods is also very high and that, combined with inefficiencies in the way the current system operates, makes it hard for new entrants to access slots."
The maiden flight, which departed about 30 minutes late, was mostly filled with government, media and tourism personnel.
There were two paying passengers among the 160 people on board, which equates to a load factor of 88 per cent based on the aircraft's 186 seats.
Bonza said more than 10,000 tickets had been sold since flights went on sale on Friday.
The airline serves reusable cups onboard, and its menu is only available through a mobile app.
Tourism benefits 'phenomenal'
Sunshine Coast Airport chief executive Andrew Brodie said Bonza would be "phenomenal" for the local economy and would bring 50 per cent more passengers through the airport.
"We're going to bring high-value tourism directly into this region, and that's what's really exciting," he said.
Queensland Treasurer Cameron Dick said having an airline based on the Sunshine Coast was a coup for the region, but also for other regional Queensland towns which will be served.
"The sound of Bonza's jet engines is the sound of Queensland's tourism economy … roaring back to life from the pandemic."
Mr Jordan ruled out a loyalty program for the airline, which is trying to differentiate itself from other carriers such as Qantas, Virgin and Rex.
"Some of those bells and whistles that are associated with business carriers, that's not for us," he said.
"If anything adds cost to our business, that's somebody's airfare going up – we don't want to do that."
