What could be the most opportune time than now for Strategic Airlines to launch its newest low cost airline, Air Australia, after Australia's aviation travel and tourism suffered a major blow due to a debilitating industrial action in one of its major air carriers.

Air Australia is the rebranded version of two-year-old Brisbane-based Strategic Airlines which plans to retire its name and full service business model from November 15.

Air Australia will initially serve select domestic routes and tourist hot-spots including Hawaii, Bali and Phuket, Thailand, and in the near future, China and the U.S. It is currently doubling its number of pilots.

"We understand the challenges of the industry and we understand the market," Strategic Airlines Chief Executive Officer Michael James said in a statement. "We also believe that there is mounting nostalgia in the consumer market and in the industry for an airline which offers genuine value and makes it readily possible for families and Australians of all ages to have the chance to fly."

Air Australia will unveil its first green and gold plane, A320 VH-YQC, on Friday.

Founded in 1991, Strategic was a broker that provided wet leased aircraft to other operators in Europe and Asia. One arm of the company, Strategic Airways, held a major Defense contract to ferry Australian troops and equipment to the Middle East between 2005 and 2010.

Strategic Airlines launched in 2009 as a full service carrier.