Proposed Australian newcomer Koala Airlines aims to commence 737 MAX services  

The Australian commercial aviation scene has become synonymous with resembling something of an airline graveyard – not just over the past 12 months, but over decades. Carrier after carrier has tried and failed to break into the market, which has historically been dominated by just two main players – the national flag carrier Qantas, accompanied by Ansett Australia and more recently, Virgin Australia.  

Indeed, 2024 has already seen both Bonza and Rex exit from the arena – both casualties which were seemingly unable to sustain Boeing 737 operations against the two much larger rivals. 

However, undeterred by this lengthening list of failures (which includes other carriers such as Compass, Impulse, Ozjet, Strategic Airlines, and Ansett itself), another proposed airline has emerged to take on the challenge of forming a viable airline to take on the duopoly of Qantas and Virgin in the Australian market – Koala Airlines. 

While little is known about the newcomer, Koala Airlines has recently revealed further details on its plans and its corporate image on social media. The proposed airline already has a website up and running, a full management team in place, and impressively, an oven-ready Air Operators Certificate (AOC) which it hopes will act as a springboard into the big league. 

Based in the southern city of Melbourne, Koala Airlines is hoping to commence Boeing 737 MAX 8 operations, and according to the carrier, its strategy will “fundamentally differ from previous entrants in a domestic market which has been long dominated by two major airlines since the Australian government first introduced the Two Airline Policy in 1952.” 

Under this policy, only two airlines were previously allowed to operate flights between state capital cities and between capitals and nominated regional centers in Australia. It was not until 1990 that the government relaxed the policy to allow competition in the market. 

The airline adds that 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, it will instead take a more innovative route. The carrier states its 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 AirlinesThe company advises that it is currently finalizing negotiations to acquire a fleet that will enable its AOC to be upgraded with the new aircraft type, which is presumed to be the Boeing 737 MAX 8 as depicted in images on its website. The AOC formerly belonged to Desert Air Safaris, another Australian airline acquired by the owners of Koala Airlines in 2019.  

Desert Air Safaris flew for over 50 years specializing in offering air tours and charter flights throughout Australia, Papua New Guinea, and the Pacific Islands. It was originally founded in 1970 by airline pilot Dick Lang and his wife, Helen. Together, they worked to connect the Australian outback and remote destinations, making such locations more accessible to domestic and international travelers. 

As one of Australia’s oldest leisure-focused carriers, Desert Air Safaris was the first carrier to introduce the concept of tour packages to the market. It operated a fleet of Douglas DC-3 aircraft and later expanded the fleet with the introduction of more modern twin-engine aircraft. By 1998, Desert Air had 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 rebranded name of Koala Airlines. With a rich heritage to build on, our focus is clear: we aim to distinguish ourselves by our new initiatives and innovations that complement rather than compete with established norms.” 

Management team in place 

The airline’s management team features several industry professionals, led by the company’s CEO, Bill Astling. Astling is said to be an industry veteran having been involved in the aviation and tourism industries for over 45 years, and possessing extensive experience in aviation management, airline restructuring, operations, aircraft chartering, strategy, and customer service. 

Astling has previously provided a range of consulting services from senior leadership to operational, technical, and advisory roles to existing and start-up airlines in the Asia Pacific region since the early 1990s, including Singapore Airlines, Air India, Angel Airlines, Merpati Indonesia, Sri Lankan Airlines, Jes Air, Antonov Airlines, Malaysian Airlines, Lao Aviation, Vietnam Airlines, Sahara Airlines, as well as several Chinese Airlines that have commenced scheduled services to airports in Australia in recent years.  

Koala AirlinesIt will be interesting to see how the progress of Koala Airlines pans out in the coming months, in a market where history dictates that it is virtually impossible to compete economically against the two established carriers. Should Koala Airlines present a viable proposition to travelers that others have been unable to offer, then it might have a chance of survival where so many others have failed, but only time will tell.    

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byLuke PetersAugust 27, 2024

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