New market entrant Koala Airlines eyes operations down under
A startup Australian airline has launched a new website, promising to “carve a unique niche” in the domestic sector with what (from its graphics, at least) appears to be a fleet of 737 MAX aircraft.
“Koala’s strategy will fundamentally differ from previous entrants in a domestic market which has long been dominated by two major airlines since the Australian government first introduced the Two Airline Policy in 1952,” states Koala Airlines, adding that since the relaxation of this legislation in 1990 the market has been awash with low-cost carriers “almost entirely leading to unsustainable competition”.
The airline also suggests its ‘Koala Tech’ solution – which will leverage AI to “optimise every facet of aviation business, from logistics and maintenance to customer service and beyond” – will also help give it a “leading position in the market”.
Regional airlines Bonza and Rex have been the most recent carriers to succumb to challenges in the sector, entering into voluntary administration in April and July 2024 respectively. However, aiming to “carve out a unique niche,” Koala Airlines aims to “[enhance] the industry landscape without disrupting existing standards;” potentially referencing that it will not go head-to-head with the likes of Virgin Australia or Qantas.
Following the failure of Bonza, Koala Airlines wrote on social media that the Australian airline industry was suffering from “the repercussions of an ill-conceived plan” which had the potential to “impede the emergence of much needed domestic competition;” clarifying that “once again, the promise of low fares has been unsuccessful. It appears they have been too low. Unlike the previous collapses, Bonza can’t blame Qantas or Virgin for competition as most of their flights were to unserved destinations”.
Koala Airlines acquired Desert Air Safaris in 2019, a company operating air tours and charter flights throughout Australia, Papua New Guinea and the Pacific Islands. The airline states it is “currently finalising negotiations to acquire a fleet that will enable our Air Operators Certificate to be upgraded with the [as yet unconfirmed] aircraft type”.
