Koala Airlines is steering clear of direct competition with Qantas and Virgin Australia by focusing on charter flights that connect with international airlines serving Australia, bundling domestic legs into overseas travel itineraries. CEO Bill Astling told Bloomberg the Melbourne-based start-up is in discussions with over 10 foreign carriers and aims to kick off operations by the end of 2026 with three B737 MAX aircraft.
Astling explained that the airline’s business model is different from typical domestic carriers, relying mainly on partnerships with international airlines instead of direct ticket sales. Koala also plans to avoid selling tickets through its own website to sidestep fare competition with larger, established competitors.
It seems the strategy has shifted from last year, when Astling mentioned Koala would target leisure and business travelers, particularly on routes between Sydney Kingsford Smith, Melbourne Airport, and Brisbane International. The carrier, whose launch plans were delayed by the COVID-19 pandemic after an initial 2020 target, is now considering routes including Adelaide International and tourist destinations such as Ayers Rock, Astling said.
In August 2025, Koala Airlines announced it had secured lease arrangements for three B737 MAX aircraft to be delivered this year, targeting a late-2026 launch for commercial operations. Astling said the plan was to start with three aircraft and add two to three more shortly after. The aim was to grow the fleet to 20 aircraft in a few years.
Australia's Civil Aviation Safety Authority (CASA) previously told ch-aviation that while Koala Airlines holds a valid air operator's certificate (AOC), it is "subject to a direction not to operate" because "the previous operations conducted under this AOC were considerably different to those which Koala is now proposing - air transport operations with large jet aircraft."
According to ch-aviation research, Koala Airlines inherited its AOC from Desert-Air Safaris Pty Ltd, a pioneering company in air tours and charter flights that had been operating for over 50 years throughout Australia, Papua New Guinea, and the Pacific Islands. Astling acquired Desert-Air Safaris in 2019 and changed the name to Koala Air. The company was then rebranded to Koala Airlines in October 2022.
In a social media post this week, Astling commented on the renewed media interest in the start-up: "To be clear, Koala has had discussions with a number of key aviation and industry participants as part of developing its plans. We have always had a policy of keeping our progress under wraps, and Koala does not comment on market speculation or confidential commercial discussions."
He added: "What I can say is that we remain firmly committed to establishing a credible third-airline presence in Australia, and we continue to make headway towards that objective."
According to the company website, Astling has more than 45 years of experience in aviation and tourism, specialising in airline management, restructuring, operations, chartering, strategy, and customer service. Since the early 1990s, he and his consultancy team have advised 12 established and start-up airlines across the Asia-Pacific region, including Singapore Airlines, Air India, Malaysia Airlines, SriLankan Airlines, and Vietnam Airlines, and served as aviation consultant to the China Chamber of Commerce in Australia.
