Koala Airlines CEO responds to ACCC comments on domestic competition
Koala Airlines, via its official LinkedIn account, responded (27-Jul-2026) to "significant interest" in the carrier following comments made by the Australian Competition and Consumer Commission (ACCC) regarding the need for more competition in the domestic industry. Koala Airlines founder and CEO Bill Astling stated: "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".
Background ✨
The ACCC said proposals from Koala Airlines and Zinc could improve consumer outcomes via greater choice and more competitive fares, although it cautioned both faced material execution and regulatory hurdles and noted Sydney slot reforms and planned airport investment might improve access for entrants.1 ACCC commissioner Anna Brakey highlighted the sector’s concentration, with Qantas Group and Virgin Australia operating 98.5% of passenger flights.1 Koala’s AOC remained subject to a CASA “direction not to operate”, as its proposed large-jet operations differed from previous activity under the certificate.2 Bill Astling said Koala secured leases for three Boeing 737 MAX due for 2026 delivery and aimed for a late 2026 start, while considering feeder flying for inbound tourists beyond Brisbane, Melbourne and Sydney.3 4