iscover
A creditor has filed a winding-up application against aviation start-up Koala Airlines.
Wealth Creation has lodged the application against Koala, which gained some press last year as a potential new competitor in domestic aviation following the collapse of Bonza. A hearing in the Supreme Court of Victoria is scheduled for 22 January.
This content is available exclusively to Australian Aviation members.
A monthly membership is only $5.99 or save with our annual plans.
- Australian Aviation quarterly print & digital magazines
- Access to In Focus reports every month on our website
- Unlimited access to all Australian Aviation digital content
- Access to the Australian Aviation app
- Australian Aviation quarterly print & digital magazines
- Access to In Focus reports every month on our website
- Access to our Behind the Lens photo galleries and other exclusive content
- Daily news updates via our email bulletin
- Unlimited access to all Australian Aviation digital content
- Access to the Australian Aviation app
- Australian Aviation quarterly print & digital magazines
- Access to In Focus reports every month on our website
- Access to our Behind the Lens photo galleries and other exclusive content
- Daily news updates via our email bulletin
On its website, Koala – founded in 2018 by industry veteran Bill Astling – features numerous renders of 737 MAX 8s in its own livery, the same aircraft type used by Bonza before its liquidation.
Despite Koala claiming to hold the Air Operator’s Certificate CASA.AOC.0317, no such AOC exists in the CASA register, with the closest entry – CASA.138AWK.0317 – being registered to the State of Western Australia.
The company, which purchased Desert Air Safaris in 2019, says it aims to “carve out a unique niche that enhances the industry landscape without disrupting existing standards by creating a lasting impact on the industry”.
“Koala’s strategy will fundamentally differ from previous entrants in a domestic market which has been long dominated by two major airlines since the Australian government first introduced the Two Airline Policy in 1952,” the website reads.
“Under this protectionist policy, only two airlines were allowed to operate flights between state capital cities and between capitals and nominated regional centres. It was not until 1990 that the government relaxed the policy to allow competition in the market.
“While many new low-cost carriers have entered the market since 1990 and focused solely on offering cheaper fares, almost entirely leading to unsustainable competition, Koala is taking a more innovative route.”
Speaking to ABC’s Four Corners last year, Astling offered few details on how the airline would operate or who was backing it, though indicated it would have a guaranteed cash refund policy and said it would fill “niches” unoccupied by the major domestic carriers.
“We are just not prepared to give away what our strategy is and allow competitors to be able to think, ‘right, well, we can work on this or work on that’,” he said.
“We’ve got a lot of support. We’ve also got a lot of skeptics. I’ve had a few people who’ve said, ‘have you appointed the liquidator yet?’ So I’ve had to tell ’em, we’re putting ’em out to tender.”
Koala Airlines, as well as lawyers for Wealth Creation, have been contacted for comment.
[email protected]
says:If they have such a great plan, support, and backing let them start with buying REX otherwise as they say, they are dreaming.
Alan Hume
says:“Boom, boom, boom … another one bites the dust!”