Australia’s domestic aviation landscape may be poised for a shake-up with Melbourne-based carrier Koala Airlines aiming to fill the void following the collapse of budget airlines Rex and Bonza.
Key Takeaways
- The airline was founded in 2018 and made a strategic move in 2019 by acquiring Desert Air Safaris, which provided them with the necessary Air Operators Certificate (AOC) to operate.
- The airline plans to utilise a fleet of Boeing 737 Max 8 aircraft, although exact routes and launch dates are yet to be revealed.
- Koala aims to avoid the same fate of Rex and Bonza by “carving out a unique niche that enhances the industry landscape”, without trying to compete directly with Qantas and Virgin.
- The launch date and ticket availability are still unknown.
Crucial Quote
“More competition means lower airfares, it’s as simple as that,” said Natalie Heazlewood, Head of Policy at the Australian Airports Association. “The ACCC’s latest report provides solid evidence to support this, and when an airline exits, passengers pay the price.”
Big number
38% — That’s the sharpest increase in airfare prices on the Melbourne to Gold Coast route since the departure of Rex and Bonza from the domestic market earlier this year.
Background
Australia’s domestic aviation sector has been in flux following the recent collapses of Rex and Bonza, both of which struggled to sustain operations in a market historically dominated by Qantas and Virgin. The Australian government’s Two Airline Policy, which was relaxed in 1990, initially allowed only two major airlines to operate on key domestic routes, making it difficult for newcomers to establish themselves.
Koala Airlines, founded in 2018, hopes to avoid the pitfalls that previous entrants have faced by focusing on customer experience rather than just offering low fares.
It already holds an AOC through its acquisition of Desert Air Safaris and is currently upgrading it for the Boeing 737 Max 8 aircraft.
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