Former Qantas executive Peter Kelly is seeking to raise AUD200 million Australian dollars (USD143.3 million) to launch Zinc Airlines, an ultra-low-cost carrier (ULCC) modelled after Ryanair, according to Australian media.
The proposed ULCC plans to commence operations about 17 months after it secures the required financing. The start-up will base its network at Sydney Nancy Bird Walton when the facility opens in October 2026.
Zinc Airlines intends to operate a single-type fleet of A321-200N jets on high-frequency trunk routes. The initial network will link the new Sydney airport with Melbourne Airport, Adelaide International, and Brisbane International, with services to Gold Coast Coolangatta to follow.
"Our model is about sweating the assets and running the planes for 12 hours a day minimum," Kelly, who previously founded defunct Cypriot carrier Cobalt, said.
Kelly told ch-aviation he is "100% focused on our [capital] raise" and declined to comment further for the time being. The start-up aims to secure AUD100 million (USD71.7 million) in equity to fund aircraft deposits and pre-launch operations, and raise an additional AUD100 million in debt.
The start-up aims to challenge the domestic dominance of Qantas Group and Virgin Australia. The two incumbent operators cumulatively control 93% of the market, according to ch-aviation capacities data for a seven-day period beginning June 1, 2026.
Zinc Airlines wants to take advantage of the western Sydney airport to establish its business model. It aims to avoid slot-congested Sydney Kingsford Smith, which has proven to be a barrier to previous challengers such as Bonza and Rex - Regional Express.
Koala Airlines, another start-up aiming to challenge the Qantas-Virgin Australia duopoly, has yet to commence operations, although it had targeted a late-2026 launch. As ch-aviation reported in August 2025, the new entrant said it had secured at least three B737-8s due in 2026 as well.
