Could Koala Airlines succeed where Rex failed?

ABC News Daily

Koala Airlines has a website, a management team and a vision to redefine air travel in Australia.

Its boss is tight-lipped about where it will fly and when. But if it gets into the air, can it really succeed in taking on the big players Qantas and Virgin when so many others have failed, most recently Rex.

Today, Emily Baker on her Four Corners investigation into why Rex couldn’t compete.

Emily Baker explains that Koala Airlines aims to provide a different product or service, similar to how Aldi and IGA operate alongside Coles and Woolworths.

She highlights that the Australian domestic market is dominated by a duopoly of Qantas and Virgin, making it challenging for new entrants.

Emily discusses how Rex’s attempt to enter the jet market and compete on the Golden Triangle routes ultimately led to its downfall.

She also notes that Qantas and Virgin’s aggressive competitive strategies played a significant role in Rex’s failure.

Emily says there's evidence that a third airline would push down airfares, and one way to achieve that would be to force Qantas to sell off Jetstar.

Featured:

Emily Baker, Four Corners reporter

Key Topics:

• Koala Airlines
• Australian aviation market
• Qantas and Virgin duopoly
• Rex Airlines failure
• Golden Triangle routes
• Airline competition
• Airfare prices
• Bill Astling
• Lim Kim Hai
• John Sharp