KOALA AIRLINES: Claims three leased Boeing 737 MAX aircraft mid 2026

According to an article in Australia Aviation, Bill Astling, the CEO of prospective domestic carrier, Koala Airlines, claims to have secured leases for three Boeing 737 MAX aircraft, due for delivery in 2026. This could make for a launch in late 2026.

Koala will also need to update its inherited Air Operator’s Certificate from Desert Air Safaris in line with its new aircraft and routes, before it can launch.

OK, I did write earlier that I was sceptical that the new airline would launch, but now they appear to be one step closer. I’m still sceptical, but maybe a smidge less than I was.

Airline Strategy

I remain interested in the strategy Koala Airlines will employ and its positioning in the market.

In the article, Astling rejects the point-to-point strategy of failed leisure airline Bonza. He also rejects the competitive domestic fare pricing of Regional Express (REX) when it tackled the domestic capital routes. Singling out REX’s competitive fares on the Melbourne-Perth route, he rejects the idea of a fare war with Qantas and Virgin. But then also states that Koala will be a competitor on the lucrative, highly serviced triangle route of Sydney–Melbourne–Brisbane.

The interview with Astling in the article is confusing, or at least indicates a disjointed strategy. On the one hand, Koala is not going to be like any other recently failed airline in the domestic market. No point-to-point leisure operator like Bonza, nor a competitor on price to the duopoly of Qantas and Virgin on domestic routes, such as the now-administered REX. So what is left? Asting cites a measured, long-term business model rather than aggressive pricing strategies—whatever that means.

2PAXfly Takeout

Australia desperately needs a domestic airline that can challenge the Qantas/Virgin Australia duopoly. The competition would challenge our currently sky-high domestic airfares, and benefit passengers hip pocket.

However, I am not sure that Koala Airlines will be the one to break the hold of Qantas and Virgin Australia. Having said that, I hope I am wrong, and that Koala’s ‘hasten quietly’ approach does work, avoiding tipping off the competition and helping them build a ‘sustainable foundation’.

Let’s face it. Many have tried, and no airline has yet succeeded in changing Australia’s two-airline domestic market.

But still, I want to believe!