Koala Airlines, Australia's newest airline, is aiming to challenge the dominance of Qantas and Virgin. The airline's CEO acknowledges the challenges, calling it a 'tough market', but believes there's room for more competition in Australia's air travel sector.
Australia 's airline industry is a tough market, with a new airline hoping to join the ranks of Qantas and Virgin ."You have to be insane," he says. "You have to have a degree of insanity."
"We've got a lot of support. We've also got a lot of skeptics. That's understandable, they just think we're going to be another one of the many that have collapsed … and we're not." "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.'"Australia's domestic aviation market is among the most concentrated in the world.
When regional airline Rex tried to move into the capital city market in 2021, it soon felt the squeeze of the big players. He says Qantas is a "hyper-aggressive" competitor that uses its scale to put pressure on its competitors, and Rex is just the latest to find out the hard way."This sort of half-baked venture of taking on Qantas and being the third major domestic airline was just such a strategic error, but such an obvious strategic error. It sort of smelled of fantasy," he says.Brett Godfrey is one of the few Australians who can claim to have successfully launched a domestic airline.
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