The collapse and near collapse of Bonza and Rex in Australia in 2024 has opened what one new contender sees as an opportunity.

Koala Airlines acquired former safari tour operator Desert Air in 2019, but it has a plan to operate scheduled, not charter flights across the country.

READ: Qantas appeals to employees following Bonza collapse

The airline has been announced a strategy that it says will work where others have failed, as it 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.

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.