By aviation writer Scott Mayman

Canberra Airport could emerge as a destination for one of two proposed start-up airlines seeking to break into Australia’s highly competitive domestic aviation market.

The prospect comes after the collapse of low-cost carrier Bonza, which had previously flagged plans to fly to Canberra before entering administration and ceasing operations before any services to the national capital could begin.

One of the new contenders is Koala Airlines, which has been promoting its proposed operations through online marketing, including mocked-up images depicting a Boeing 737 flying above Canberra.

Koala Airlines chief executive Bill Astling has previously said the airline was aiming to begin services later this year, subject to securing the necessary regulatory approvals and finalising target routes. However, no further updates on the airline’s progress or launch timetable have been provided in recent months.

A second start-up carrier, Zinc Airlines, has also outlined ambitious plans to enter the domestic market.

The airline is proposing an ultra-low-cost model based on the approach used by European budget giant Ryanair, claiming fares could undercut existing low-cost operators such as Jetstar.

Initial plans focus on services linking Brisbane, Sydney and Melbourne, with operations centred on Sydney’s new Western Sydney Airport.

Canberra is not included in Zinc Airlines’ initial route proposals and the airline has not announced a launch date.

However, under a longer-term expansion strategy, Zinc has flagged plans to add more destinations after about four years of operation, including Adelaide and the Gold Coast.

Neither airline has secured approval to operate commercial passenger services in Australia, with both proposals still subject to regulatory processes and commercial considerations.