The Australian commercial aviation scene has become something of an airline graveyard – not just in the last 12 months, but for decades. One airline after another has tried to break into the market and failed. Historically, the market has been dominated by just two major players – the national carrier Qantas, followed by Ansett Australia and, more recently, Virgin Australia.
In fact, Bonza and Rex have already left the race for the aircraft in 2024 – both victims who were apparently unable to maintain the operation of the Boeing 737 against the two much larger competitors.
Yet, undeterred by this ever-growing list of bankrupt companies (which includes other airlines such as Compass, Impulse, Ozjet, Strategic Airlines and Ansett itself), another airline has taken up the challenge of creating a viable airline that can challenge the Qantas-Virgin duopoly in the Australian market: Koala Airlines.
While little is known about the newcomer, Koala Airlines recently revealed more details about its plans and corporate presence on social media. The proposed airline already has a website, a full management team and – impressively – a brand new Air Operators Certificate (AOC) that will serve as its springboard to the big league.
Koala Airlines, based in the southern city of Melbourne, hopes to begin operating a Boeing 737 MAX 8. According to the airline, its strategy will be “fundamentally different from that of previous entrants in a domestic market that has long been dominated by two major airlines since the Australian government introduced the two-airline policy in 1952.”
Under this regime, only two airlines were previously permitted to operate flights between state capitals and between state capitals and certain regional centres in Australia. It was not until 1990 that the government relaxed this regime to allow competition in the market.
The airline adds that since 1990, many new low-cost carriers have entered the market that have focused exclusively on cheaper fares, which has almost exclusively resulted in unsustainable competition. Instead, it will take a more innovative path. The airline states that its goal is to “create a unique niche that enriches the industry landscape without disrupting existing standards and that has a lasting impact on the industry.”
The company says it is currently finalizing negotiations to acquire a fleet that will allow it to upgrade its AOC with the new aircraft type, believed to be the Boeing 737 MAX 8, as shown in images on its website. The AOC was formerly owned by Desert Air Safaris, another Australian airline that was acquired by the owners of Koala Airlines in 2019.
Desert Air Safaris has specialised in scenic flights and charter flights throughout Australia, Papua New Guinea and the Pacific Islands for over 50 years. The company was founded in 1970 by pilot Dick Lang and his wife Helen. Together they worked to connect the Australian outback and remote destinations and make them more accessible to domestic and international travellers.
One of Australia’s oldest leisure operators, Desert Air Safaris was the first operator to introduce the concept of packaged tours to the market, operating a fleet of Douglas DC-3 aircraft and later expanding the fleet by introducing more modern twin-engine aircraft. By 1998, Desert Air consolidated its operations at Adelaide Airport (ADL) and was acquired by Koala Airlines in 2019.
According to the Koala Airlines website, the “legacy of Desert Air will continue under the new name Koala Airlines. We have a rich heritage to build on and our focus is clear: to distinguish ourselves through new initiatives and innovations that complement, not compete with, established norms.”
Management team is
The airline’s management team consists of several industry professionals led by the company’s CEO, Bill Astling. Astling is an industry veteran who has been in the aviation and tourism industry for over 45 years and has extensive experience in aviation management, airline restructuring, operations, aircraft chartering, strategy and customer service.
Since the early 1990s, Astling has provided a range of consultancy services from senior management to operational, technical and advisory roles to existing and start-up airlines in the Asia Pacific region, including Singapore Airlines, Air India, Angel Airlines, Merpati Indonesia, Sri Lankan Airlines, Jes Air, Antonov Airlines, Malaysian Airlines, Lao Aviation, Vietnam Airlines, Sahara Airlines and several Chinese airlines that have commenced scheduled services to airports in Australia in recent years.
It will be interesting to see how Koala Airlines performs in the coming months, in a market where historically it has been virtually impossible to compete economically with the two incumbent airlines. If Koala Airlines can provide travellers with a viable offering that others have not been able to, then it may have a chance of surviving where so many others have failed, but only time will tell.
