The airline also points out historical barriers such as the now-defunct Two Airline Policy, which until 1990 limited competition by allowing only two airlines on major routes between state capitals and cities. Although this regulation ended decades ago, breaking into the market remains tough due to dominance by established players.
Koala Airlines is reported to have secured aircraft but has not released further information. Marketing materials show a Boeing 737 MAX 8 in proposed livery, indicating these planes may be leased or part of undisclosed orders for the model. The company is also developing its Koala Tech division, aiming to use artificial intelligence across its operations.
In 2019, Koala Airlines acquired Desert Air Safaris—a carrier founded in 1970 that served remote communities before focusing on tourism from Adelaide. This move was likely motivated by access to Desert Air Safaris’ Air Operating Certificate, set to expire in 2027; marketing materials indicate there may still be interest in serving underserved regions.
Bill Astling founded Koala Airlines in 2018 and brings more than four decades of experience with several Asia Pacific airlines including Singapore Airlines, Air India, Sri Lankan Airlines, Malaysia Airlines, and Vietnam Airlines.
Details about funding sources or investors remain undisclosed. The airline states that withholding information is intentional as it seeks differentiation from past failed startups like Bonza Airlines—a carrier that targeted remote communities but ceased operations within a year.
While budget airlines typically succeed by offering lower fares on less competitive routes—stimulating demand—Australia’s vast geography contrasts with its relatively small population of around 27 million people compared with countries like the United States at over 340 million. High operating costs and limited demand outside major city pairs present significant challenges for any newcomer hoping to fill large aircraft such as the Boeing 737 MAX on underserved routes or compete directly with dominant carriers.
"Koala references the 1952 Two Airline Policy as a former barrier to entry for startup airlines," according to statements from company representatives. "Under this regulation, only two airlines could fly between state capitals and major cities, greatly restricting competition."
"It's promising that its innovative practices will distinguish it from failed low-cost startups of the past," said CEO Bill Astling regarding Koala's strategy moving forward.
As Koala prepares for launch amid stiff competition and uncertain market conditions, industry observers will watch closely whether this new venture can achieve lasting success where others have struggled.
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