Australian budget airline start-up Bonza said it received a nod from the country's civil aviation regulator to fly scheduled passenger flights, marking an entry for a small player in a sector dominated by Qantas Airways and Virgin Australia.

The airline, backed by U.S. private investment firm 777 Partners, is preparing to begin selling tickets from its Sunshine Coast base, it said on Thursday. (Reporting by Harshita Swaminathan; editing by Uttaresh.V)