‘Newest Australian airline’ reveals how it will woo passengers

An Aussie man says he is starting Australia’s next airline, revealing the one thing he will do differently to Qantas and Virgin.

The head of the newest airline hoping to launch in Australia has remained tight-lipped about how it will compete in the nation’s aviation industry.

Until now.

Bill Astling, Chief Executive of Koala Airlines, won’t reveal when the Melbourne-based aviation company will begin flying in Australia, or its chosen destinations. However, Astling has touched on a strategy the airline will use in order to avoid failure when attempting to break the nation’s duopoly.

After Rex and Bonza went into administration earlier this year, Australia has just two carriers between major city routes – Qantas and Virgin. Astling said Koala has learned lessons from its predecessors, claiming they got “emotionally carried away” and the airline will not follow the same path.

“They think they can beat the two airlines,” Astling said. “And [that] the only way they’re going to beat them is by lowering the fares. Well, that’s never worked, and it probably never will.”

Instead, he says the secret to the success of Koala will be in taking a similar approach to that of Aldi or IGA in the supermarket sector. That is, by filling “niches” left by the main carriers.

More specifically, he revealed the airline will have a guaranteed cash refund policy, and that airfares will be placed into a trust account until the flight is taken.

“If you don’t fly, you’ll get your money back. It’s simple,” he told Four Corners.

There are still many questions about the airline's strategy.

It’s like music to many Australian travellers’ ears. The Albanese Government recently announced it is planning to establish a new watchdog – The Aviation Industry Ombudsman – to clamp down on the sector.

The external dispute resolution service would be able to force airlines and airports to provide compensation to passengers, publish reports on airline and airport behaviour – naming and shaming companies doing the wrong thing – and refer alleged misconduct to authorities.

It comes after an influx of passenger frustrations, including difficulties extracting refunds or travel credits out of the carriers.

Bill Astling is the head of Koala Airlines. Picture: Four Corners

When it comes to other details about Koala Airlines, “you’ll have to just wait”.

“We are just not prepared to give away what our strategy is and allow competitors to be able to think: ‘Right, well, we can work on this or work on that’.”

It’s not Astling’s first time in the aviation industry. He launched cargo carrier Air Express in 1977, despite a court challenge from Ansett. Air Express went into receivership after the battle. Astling has continued to work with airlines both in Australia and in other countries.

When it comes to starting a new airline, he said: “You have to be insane. You have to have a degree of insanity.

“I’ve had a few people who’ve said: ‘Have you appointed the liquidator yet’?” he jokes.

It's not known when the airline will begin flying.

However, jokes aside, he’s confident the airline will be able to break into the competitive market.

“Our population is small,” Astling said. “But the vast distances mean we can only travel by air. It can’t all be done by two airlines.”

Koala was founded in 2018. In 2019, the airline bought air tour and charter operator Desert Air Safaris, paving the way for the eventual rebranding into Koala.

There has been a website launched revealing its management team and logo, with a render showing that it could be using a fleet of Boeing 737 Max aircraft.

According to their website: “Koala will fundamentally differ from previous entrants in a domestic market which has been long dominated by two major airlines since the Australian government first introduced the Two Airline Policy in 1952.”