KOALA AIRLINES: Still promising to take off in 2026, still with no aircraft

A new challenger to the duopoly of Qantas and Virgin announced its bid around the time REX Airlines went into liquidation. We haven’t heard a lot from them since, and there has been little to no update on their online information. AI have seen a couple of fairly general interviews with the putative instigator Bill Astling, but that’s about it. Earlier this week, the AFR published an update story.

The story does not give us a lot more than we already know, save that it is looking to launch at the earliest by late 2026 according to Astling. That is despite not yet having a single aircraft or an Air Operator’s Certificate.

Koala Airlines, helmed by industry veteran Bill Astling, is the latest to promise an alternative airline for Australian domestic travellers.

Call me sceptical, call me a cynic, even call me negatively minded, but I will believe it when I successfully complete a flight with them!

A big promise when you have no planes

Bill Astling has asserted in media interviews this week that Koala is on track to start operations late next year. “But we’re not in the business of giving our competitors a 12-month head start.” Except they already have, haven’t they?

The only ephemeral things Koala Airlines has released are professional digital renderings of Boeing 737-800s in its livery and launched a website featuring its branding.

There is no news on aircraft, routes, investors, airline-related certification, in fact, nothing except words and professional image renders.

Astling has Koala Airlines in contradictory strategies. It is both “creating quite a buzz,” while it also is “deliberately keeping a low profile.” Yep, not sounding particularly believable in my humble opinion.

He is also claiming to have aviation-savvy financial backers. They will assist the company to avoid the strategic errors of other competitors to Qantas and Virgin Australia.

Learning from Bonza and Rex?

Those financial backers are going to need deep highly secured pockets if the history of Bonza and Rex are going to be learnt from. Both of those failed airlines lacked sufficient stable funding. They also arguably made other strategic errors, but funding is what seemed to cut them down in the end. Bonza collapsed in 2024, and Regional Express (Rex) had to abandon its capital city strategy, and is still in administration while it tries to find a buyer for its regional operations.

Astley insisted that Koala’s strategy will be fundamentally different, without explaining, except that Koala will not try to be Qantas or Virgin.

Industry pundits disagree as to whether there is room for a third airline, but none think it will be an easy birth.

Leadership experience

The AFR article also raises questions about the depth of aviation experience that the Koala team have. Astling cites his 45 years in the tourism and aviation industry; however, Koala’s chief operating officer, Sally Spring, seems to do double duty with a job at Ballarat Clarendon College. Apparently, a budding airline COO is not tied up full-time working on an airline that is set to launch in 18 months. This hasn’t helped the perception that Koala is not a serious contender.

2PAXfly Takeout

For consumers, the promise of a third domestic airline is enticing. More competition should drive down airfares and improve service, not to mention open new networks.

I think it will be a long time before that ship is sailing, or in this case, taking off.

I fear it will be a lot longer than 18 months before travellers suffer the limited competition that the duopoly of Virgin/Qantas provides.

All Koala Airlines will be is a speculative promise until it secures aircraft, funding, and regulatory approval.

Launching in 18 months? I’d say the chances are somewhere between Buckley’s and Nunn.