05-08-2025
New ‘fundamentally different' airline to launch Australia flights in 2026
A new domestic airline hoping to challenge Qantas and Virgin in Australia is set to launch in 2026, according to the CEO.
Koala Airlines said its model is fundamentally different from previous entrants into the market.
The prospective airline follows the collapse of budget airline Bonza, which went into voluntary administration after just over a year of operation.
'We're not trying to be Qantas or Virgin – our model is fundamentally different, and that's why we've attracted the backing we have,' Koala's founding CEO Bill Astling told The Australian Financial Review.
'We've deliberately kept a low profile – not because we're stalling, but because we're building something with a long-term, sustainable foundation. We've learned from the past – both ours and the industry's – and we're taking a disciplined, strategic approach.
'We're on track to start operations late next year. But we're not in the business of giving our competitors a 12-month head start.'
In 2019, Koala Airlines acquired Desert Air Safaris, an air tours and charter flights company that operated for over 50 years throughout Australia, Papua New Guinea and the Pacific Islands.
The airline's website said: '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.'
However, Koala does not yet have a fleet of planes for the domestic aviation market and has not disclosed details of its flight paths.
Bonza, which similarly marketed itself as a competitor to Qantas and Virgin, was the first budget airline to launch in Australia since 2007. It cited aircraft shortages and a lack of access to Sydney airport among the reasons for its collapse.
