New Australian domestic carrier Koala Airlines to launch from 'late next year', chief executive Bill Astling says
Aussie travellers were delivered hope there will be a new carrier soon as news broke last year that Koala Airlines, the rebranded version of flying safari and charter operator Desert Air, was looking to break into the domestic aviation market.
It follows the collapse of short-lived budget carrier Bonza, which failed to secure slots at Sydney Airport throughout its lifespan, and Regional Express entering administration after attempting to challenge Qantas and Virgin on major city routes.
Fresh hopes of a new player in the aviation market have emerged as Koala Airlines' CEO Bill Astling said the carrier was likely to begin operations from late next year.
'We're not trying to be Qantas or Virgin – our model is fundamentally different, and that's why we've attracted the backing we have,' Mr Astling told The Australian Financial Review.
'We've deliberately kept a low profile – not because we're stalling, but because we're building something with a long-term, sustainable foundation. We've learned from the past – both ours and the industry's – and we're taking a disciplined, strategic approach.
'We're on track to start operations late next year. But we're not in the business of giving our competitors a 12-month head start.'
The incoming airline's website says its strategy will 'fundamentally differ from previous entrants in a domestic market'.
Koala airlines is taking a 'more innovative route' compared to the litany of low-costs carriers that have attempted to break into the local aviation market over the past 35 years.
The airline, however, is yet to acquire planes suited for the domestic aviation market and has not revealed details about where it will fly to or from.
Koala's entrance into the Australian aviation market follows Bonza failing in April 2024 and leaving hundreds of creditors, including employees, out of pocket.
Bonza began operations in January 2023 with a low-cost model of operating a regional network mostly un-serviced by the other major airlines.
Demand and the inability to expand the fleet of 180-seat Boeing 737s were among the reasons considered for the company's collapse.
The Australian Competition and Consumer Commission in May revealed Qantas' budget subsidiary Jetstar cashed in on the lack of competition in the domestic aviation sector in the second half of 2024.
Jetstar's operating margin was up 13 per cent from the six months up to December 31 2023.
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