New domestic contender Koala Airlines keeps ‘game-changing’ strategy under wraps

Far from being deterred by the fate of Bonza and Rex, Koala Airlines is preparing to become Australia’s next domestic contender – just don’t ask when, where or how.

The dust has barely settled around the collapse of Bonza and Rex, but yet another new contender is preparing to take on the hard-to-crack Australian domestic aviation market.

Koala Airlines has no aircraft and no valid air operator’s certificate, but it does have a glossy website talking up its prospects as the airline that will succeed where so many others have failed.

Under the heading “a new flight path for Australian aviation” the website claims that “in the past few years Koala Airlines has been committed to redefining air travel” despite not actually operating a single flight in that time.

References to a “game changing strategy” are not explained, with the site simply referring to Koala taking a “more innovative route than other new low cost carriers which focus solely on lower fares”.

“Our goal is to carve out a unique niche that enhances the industry landscape without disrupting existing standards by creating a lasting impact on the industry,” the website says.

It lists Bill Astling as CEO and Melbourne councillor Philip Liu as a director.

Few other details about Koala’s proposed operations are revealed, although computer-generated images on the website give the impression the airline will fly Boeing 737 Max 8s.

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As yet, Koala Airlines has no aircraft and no valid air operators certificate.

Registered with the Australian Securities & Investments Commission five years ago, Koala Airlines previously traded as Desert-Air Safaris, operating a fleet of turbo props and piston engine aircraft including Piper Chieftains, Cessnas and Douglas DC-3s.

Established by Dick and Helen Lang in 1970, Desert-Air Safaris was a successful charter business carrying tourists throughout Australia, Africa and Papua New Guinea before the couple’s retirement in 2019.

Tragically, Mr Lang and son Clayton were killed fighting the Kangaroo Island bushfires the following year.

On Monday, Mrs Lang declined to comment on Koala Airlines, saying she only heard from Mr Astling when he had questions about the air operator’s certificate (AOC).

Upon acquiring Desert-Air Safaris, Koala Airlines picked up the company’s AOC, but it is not valid for jet aircraft operating regular public transport flights.

To ensure its validity, Koala will need to apply to the Civil Aviation Safety Authority for amendments in a complicated process that could take several months.

“Any operator applying to conduct airline operations in Australia must meet strict safety and regulatory requirements and undergo a rigorous approval process,” a CASA spokeswoman said.

“We have yet to receive an application from Koala Airlines to conduct operations.” Koala will also have to update the maintenance plan, fatigue management arrangements and key personnel associated with the airline.

That could also take some time. Failed budget carrier Bonza was granted its AOC nine months after lodging an application.

An even bigger challenge could be sourcing appropriate aircraft for domestic jet operations, with a well-documented shortage of planes.

Mr Astling, 76, has a long history in aviation, including consulting and advisory roles with 12 existing and start-up airlines in the Asia-Pacific such as Singapore, Sri Lankan, Air India, Malaysian, Vietnam and a number of Chinese carriers.

But the prospects for any airline start-up in Australia going head to head with the Qantas and Virgin Australia are not great.

One former Rex director who did not want to be named said without a heavier hand from the Commonwealth it was difficult to see how a newcomer could survive.

“There is only one path to Australia having three airlines, and that’s a forced break-up of Qantas and Jetstar,” he said.

“The amount of capital needed to bankroll an airline with no obvious path to success makes it very hard to succeed as a third player.”

Originally published as New domestic contender Koala Airlines keeps ‘game-changing’ strategy under wraps