Can Koala Airlines Break Australia’s ‘Third Player’ Curse?

30.08.2024 - 18:48 / skift.com / Virgin Australia / Gordon Smith

It’s been a rough year for the Australian airline industry. In late April, low-cost carrier Bonza suspended its entire flying program and entered voluntary administration, a form of protection from creditors. Despite assurances that the measure was temporary, the company never returned to the skies and ultimately collapsed.

A few weeks later, Rex Airlines — the country’s third-largest operator — also entered voluntary administration. The company scrapped its Boeing 737 network linking Australia’s largest cities, with only smaller regional planes currently flying.

Rex recently described the situation as a “difficult period,” with new backers currently being sought to shore up the business for the long term.

The result is just two companies competing for passengers flying between the country’s biggest population centers. The Qantas Group – which operates Australia’s national airline alongside low-cost subsidiary Jetstar – and Virgin Australia, a smaller domestic-focused rival. 

It raises a fundamental question that strikes at the heart of Australian aviation: Is it possible for a third player to thrive in a duopoly market, or will history likely repeat itself?

The latest attempt to shake up the status quo appears to be Koala Airlines. This week, the company revealed a slick new website and brand, claiming the carrier will help “build a brighter future.” 

A lack of detail about its launch plans combined with lofty promises has left more questions than answers. After false starts and high-profile failures, some local media outlets are skeptical about the start-up’s prospects of actually getting off the ground.

Giving Koala Airlines the benefit of the doubt, here’s what we know about a company that is aiming to “reshape the Australian landscape.”

While its official website koalaair.com.au is light on detail in many areas, one section that’s brimming with content is the management team page.

Koala claims that its executives have over 300 years of combined experience in the industry. This includes roles at some of the world’s biggest carriers such as Singapore Airlines, British Airways, Emirates, and Australia’s national airline – and likely Koala rival – Qantas.

Its founding CEO is Bill Astling, an industry veteran with more than 45 years in the business. His biography references a catalog of senior advisory and consultant roles. Other high-ranking personnel include Keith Bolshaw as CFO, Sally Spring as COO, and Anton Meryl Nithianandan as CTO. 

Koala claims its approach “will fundamentally differ” from previous entrants in the Australian airline market. The start-up says the sector has suffered from a protectionist ‘Two Airline Policy’ which was first introduced in 1952, and not relaxed until the 1990s.