The CEO of Koala Airlines says it will enter the commercial aviation market next year with what is believed to be the delivery of two Boeing aircraft set to take off in August 2026.
While not wanting to go into detail, its Melbourne-based boss Bill Astling told Travel Weekly that the new airline is on track to take off, but he declined to reveal further details. To add credence to his claim, Astling attended the CAPA Aviation Conference in Cairns last week.
Meanwhile, the airline’s website has been updated and says that it is committed to “redefining air travel and setting new standards” that will reshape the Australian landscape.
But Astling did tell the AFR that his plans for a new airline were already “creating quite a buzz”, even despite the company “deliberately keeping a low profile” as it prepares to launch.
The reaffirmation that airline is set to fly will add Koala to a long line of airlines that have attempted to take on the duopoly between Qantas and Virgin. Bonza, the last to try, collapsed last year, as did Regional Express, both of which attempted to compete on capital city routes.
The collapsed regional carrier REX is currently surviving with millions of dollars in government assistance.
“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,” Astling told the AFR, adding that he had financial backers “who know aviation”.
“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,” he said.
“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.”
Rather than compete with ultra-low fares “our goal is to carve out a unique niche that enhances the industry landscape without disrupting existing standards by creating a lasting impact on the industry,” Koala says on its website.
“At the forefront of our strategy is Koala Tech, a groundbreaking technology platform designed to revolutionise the aviation industry. This innovative platform seamlessly integrates a range of aviation business applications, enabling comprehensive automation and harnessing the full power of artificial intelligence.”
In 2019, Koala Airlines acquired Desert Air Safaris, a pioneering company in air tours and charter flights that had been operating for over 50 years throughout Australia, Papua New Guinea and the Pacific Islands.
The Koala Airlines website says Astline has provided a range of consulting services from senior leadership to operational, technical and advisory roles to 12 existing and start-up airlines in the Asia Pacific region since the early 1990s. They included Singapore Airlines, Air India, Angel Airlines, Merpati Indonesia, Sri Lankan Airlines, Jes Air, Antonov Airlines, Malaysian Airlines, Lao Aviation, Vietnam Airlines, Sahara Airlines and various Chinese Airlines starting flights to Australia.
The Australian government introduced the Two Airline Policy in 1952 as a barrier for new entrants to the country’s aviation market. Until the government relaxed the policy in 1990, only two airlines were allowed to operate flights between state capital cities and between capitals and nominated regional centres.
