Koala Airways is allegedly hoping to become a new domestic competitor, just months after Bonza Airways collapsed and Rex Airlines reduced its Boeing 737 services between capital cities.

Koala Airlines says it began its ambitious plan to enter the domestic market in 2019, and its "strategy will fundamentally differ from previous entrants in a domestic market which has been long dominated by two major airlines".

"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," it said.

Koala Airlines acquired Desert Air Safaris' Air Operators Certificate (AOC) in 2019. Desert Air Safaris' Air was founded in 1970 and connected remote areas of Australia, which Koala says will continue to do.

According to its recently launched website, Koala Airlines is "currently finalising negotiations to acquire a fleet that will enable our Air Operators Certificate (CASA.AOC. #0317) to be upgraded with the new aircraft type".

"This step is crucial in solidifying our operational capabilities and readiness to serve our customers with the highest standards," it said.

Images used on the website show Boeing 737 MAX 8s in Koala Airlines livery flying above Australia's major cities.

Image: Koala Airlines