A new(ish) domestic airline for Australia is set to hit the skies in late 2026, borrowing a name from one of the island continent’s most popular creatures – the koala. It emerges out of the ashes of the former Desert Air Safaris, an air tours and charter flight pioneer, which Koala acquired in 2019.
Based out of Melbourne, the would-be rival to Qantas and Virgin, has been described by press as a “budget” or “low-cost” carrier, but Koala Airlines specifically says that it is adopting a different approach.
“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,” the firm’s website states.
Is a new Aussie airline viable?
Some commentators have questioned the viability of the venture. Simple Flying points out that Australian aviation is dominated by national flag carrier Qantas and its low-cost subsidiary, Jetstar, which together possess a market share above 60%. Their closest competitor is Virgin Australia with around 35%. The rest are left with scraps.
The collapse of short-lived Bonza in April 2024, after only 15 months of low-cost operations, highlights how tough the low-cost segment is for start-ups. Other concerns are raised by the fact that so far Koala’s fleet is inexistent, and it appears to have had a slow take-off.
But COVID-19 intervened after its founding in 2018 by Bill Astling. The CEO is an aviation sector veteran with, according to his CV, extensive experience working with minor players and majors, including Singapore Airlines (consistently ranked among the top three carriers in the world) and various Chinese airlines entering the Australian marketplace for the first time.
Intentional “low profile”?
That averred career know-how, combined with Desert Air’s heritage as the first Australian airline to offer the concept of “packages”, could mean Koala is well-placed to make its “fresh approach … inspired by our passion for service, innovation and customer experience” work.
Like koalas, which spend up to 20 hours a day sleeping in the forks of branches, Koala Airlines says it wants to “carve out a unique niche” and claims it is aiming to enhance “the industry landscape without disrupting existing standards.”
Speaking to The Australian Financial Review, Astling has explained the firm’s “low profile” as part of a “disciplined, strategic approach,” which he says puts the firm “on track to start operations late next year.” Explaining the secrecy, he added: “But we’re not in the business of giving our competitors a 12-month head start.”
