Addendum
Eternal optimists?
August 1st 2024
Only weeks after Rex Airlines contracted to its regional roots and entered voluntary administration, another Australian airline is having a go at succeeding in the country’s battle scarred domestic market. Read More »
At press time, Koala Airlines had unveiled its livery, website and leadership team and was on the verge of securing 737MAX 8s as its launch aircraft.
 |
Rebranded from Desert Air Safaris Pty Ltd, the Melbourne-based LCC’s founding executive team is playing close to its chest when it comes to revealing its strategy , saying enigmatically the airline will “fundamentally differ” from previous collapsed Australian airlines.
Its investors believe many LCCs fail because they concentrate on offering cheap fares “leading to unsustainable competition”.
Koala Airlines CEO, Bill Astling, said Koala Airlines will be flying by the end of the year and that it will compete with Qantas and Virgin Australia.
Melbourne politician, Phil Le Lui is a director of the new airline, Buzz, Emirates Airline and KLM veteran, Sally Spring, is chief commercial officer and Keith Bolshaw chief financial officer.
At Rex, administrator EY is still on the search for a new owner after the airline serving the “the heart of the country” no longer could pay its bills. It has stopped flying between Australia’s capital cities, an attempt to compete against dominant Qantas Airways and Virgin Australia that was disastrous.
Rex was reported to be A$500 million in debt when it entered voluntary administration on July 30. In the closing week of August, the Federal Court agreed to an EY request to extend a ruling on its survival to November 25. EY said it need more time to assess expected non-binding offers.
Rex has received government backing to keep is regional network alive and has experienced an outpouring of support from rural Australian communities dependent the network it flies across eastern Australia.
