(Adds background and further details) Jan 12 (Reuters) -...

(Adds background and further details)

Jan 12 (Reuters) - Australian low-cost startup airline Bonza said the country's civil aviation regulator granted permission for it to operate scheduled passenger flights, marking the entry of a new player into a duopoly market.

Australia's Civil Aviation Safety Authority confirmed it had granted the low-cost carrier an Air Operator’s Certificate.

Bonza will enter a domestic aviation market dominated heavily by Qantas (QAN) and Virgin Australia. According to the country's competition regulator, Qantas and its unit Jetstar together flew over 60% of domestic passengers in October 2022, while Virgin Australia flew 33.6%.

However, Bonza, backed by U.S. private investment firm 777 Partners, has its eyes on routes not served, or under-served by its larger rivals.

The airline is now preparing to begin selling tickets for its initial 27 routes, from its base on the Sunshine Coast.