Is Australia really about to get a new commercial passenger airline? According to the CEO of the fledgling carrier, it is – and it’s set to launch in late 2026.
About a year ago, reports of a new airline entering the Australian passenger aviation market surfaced. But the news came at a time of particular volatility in air travel – just a few months after low-cost carrier Bonza ceased operating and a month after Rex’s Boeing operations were grounded. It also involved an airline without an air operator certificate and one providing few details, other than it aimed to launch domestically with new Boeing 737-8 planes.
It’s hardly surprising that the news was taken with a grain of salt.
But Bill Astling, CEO of Koala Airlines, recently fuelled speculation about the carrier after he said the company is on track to begin operations by the end of next year – despite apparently having no aircraft.
“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 AFR.
“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.”
Like when the company made headlines in 2024, Koala Airlines’ website still gives little away.
“Koala’s strategy will fundamentally differ from previous entrants in a domestic market which has been long dominated by two major airlines,” it states.
“While many new low-cost carriers have entered the market since 1990 and focused solely on offering cheaper fares, almost entirely leading to unsustainable competition, Koala is taking a more innovative route.
“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.”
What that niche is, only time will tell. However, the company now states that it is at least “finalising negotiations to acquire a fleet that will enable our Air Operators Certificate”.
If it were to launch, its network would be anyone’s guess at this point. However, imagery on its website still shows Koala Airlines-liveried jets flying above Perth and Canberra, suggesting the Melbourne-based operation could at least fly to those destinations.
Tourism boost
John Boris, Chief Growth Officer at Big Red Group – one of Australia’s largest experience networks – said he hopes Koala brings “fresh momentum to a market crying out for change”.
“The arrival of a new player in Australia’s domestic aviation market is a breath of fresh air in a stagnant market,” Boris stated.
“For too long, travellers have paid the price – quite literally – with limited domestic options, an uncertain market which led to sky-high fares that curbed visitor numbers to regions that rely on tourist dollars.
“The introduction of Koala Airlines brings with it more competition as well as more choice for consumers, and most importantly, connectivity to regions that are the backbone of Australia’s tourism and experiences industry.”
