Sonali Tiwary
Sunita Somvanshi
Upstart carrier Koala Airlines says it will launch domestic services in late 2026, despite lacking aircraft and questions about its Air Operator’s Certificate (AOC). CEO Bill Astling, who founded the company in 2018, claims the airline has backers who “understand aviation” and a strategy fundamentally different from major competitors Qantas and Virgin Australia.
“We’re not trying to be Qantas or Virgin – our model is fundamentally different,” 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.”
The Melbourne-based carrier displays Boeing 737 MAX 8 aircraft renders on its website, the same type used by Bonza before its liquidation last year. Koala claims to hold the Air Operator’s Certificate CASA.AOC.0317, but no such AOC appears in the CASA register, with the closest entry registered to Western Australia.
In 2019, Koala purchased Desert Air Safaris, a company that operated air tours and charter flights throughout Australia, Papua New Guinea, and the Pacific Islands for over 50 years. This acquisition is meant to serve as a springboard for the airline’s commercial passenger operations.
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Astling, who brings 45 years of aviation experience, has provided consulting services to 12 airlines in the Asia Pacific region, including Singapore Airlines and Air India. The management team reportedly features industry professionals with over 300 years of combined experience from carriers including British Airways, Emirates, and Qantas.
The airline recently survived a winding-up application filed by creditor Wealth Creation in the Victorian Supreme Court. The application was dismissed in January with the consent of both parties.
Koala aims to differentiate itself with a guaranteed cash refund policy, with fare payments held in trust accounts until departure. Astling told ABC’s Four Corners the airline would fill “niches” unoccupied by major carriers but offered few specific details on operations or financial backing.
Industry history suggests Koala faces significant challenges. The Australian aviation market has been described as an “airline graveyard,” with numerous failed attempts to break the Qantas-Virgin duopoly. Recent casualties include Bonza and Regional Express (Rex), which both ceased operations in 2024.
With domestic travel rebounding strongly after the pandemic, Koala’s entry comes at a time of increased consumer demand, though questions remain about whether its undisclosed strategy will succeed where others have failed.
