Formula One Minardi team boss Paul Stoddart hopes to have a new budget airline called OzJet flying Australia's east coast by Christmas.
Mr Stoddart, in Australia for the Grand Prix, said today that OzJet would take on Virgin Blue and Qantas discount airline JetStar.
"We'll start off with about half a dozen aircraft, probably launching in about October," he told the Ten Network.
"We're hoping to get in just before Christmas."
OzJet would initially focus on the Sydney, Melbourne and Brisbane markets and would most likely operate from suburban airports like Essendon and Moorabbin in Melbourne, Bankstown in Sydney and Archerfield in Brisbane.
"We are trying to serve a different niche market and I think it will work really well," Mr Stoddart said.
He first floated the plan in November last year and had talks then with Victorian Premier Steve Bracks.
A Victorian government spokesman today confirmed Mr Stoddart would be meeting state government officials in the next week to discuss his proposal.
"The government is aware of Mr Stoddart's proposal for an airline," he said.
"Mr Stoddart will be providing further information to the government."
NSW Premier Bob Carr welcomed the new airline but appeared to rule out using Bankstown airport for OzJet operations in Sydney.
"We all want the lower fares and boost to tourism that comes from more competition in the airline industry, but I think Bankstown has got legitimate fears about a build-up in jet activity," Mr Carr told the Ten Network.
Mr Stoddart said he didn't expect problems from residents near the suburban airports.
"I'm sure the people who live in the surrounding areas will adopt it very, very quickly," he said.
"You would hear more of a truck, a semi-trailer, with its airbrakes on than you would of a BA146 either landing or taking off, it's a simple fact of life."
The new airline would target fares at about $150, including taxes, and could create up to 1,000 jobs.
Melbourne-born Mr Stoddart has said he believes there is room for a cut-price airline in Australia modelled along the lines of European success stories Eurojet and Ryanair.
Yet Another New Airline For Australia.
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