Singapore: Jetstar Asia, the Singapore-based low-cost carrier, will cease operations at the end of July, observing the end of a two-decade run in the region’s competitive budget travel sector.
The decision, announced jointly by the airline and its part-owner Qantas, will see over 500 employees laid off and 16 routes across Asia suspended. Citing soaring supplier costs some up to 200 percent higher, alongside mounting airport fees and fierce regional competition, Jetstar Asia established that operations will wind down progressively over the next seven weeks.
The airline will advise customers whose travel plans are affected, with full refunds to be delivered to passengers with bookings beyond July 31. Flights from Singapore to destinations in Malaysia, Indonesia, and the Philippines are among those impacted.
Travellers may be rebooked on alternative Qantas Group flights where possible, while those who purchased tickets via agents or other airlines are recommended to contact their providers directly. Despite Jetstar Asia’s closure, the operations of Jetstar Airways in Australia and Jetstar Japan will stay unaffected.
Qantas Group Chief Executive Vanessa Hudson stated that, “The increase in supplier costs has materially changed Jetstar Asia’s cost base.” The budget airline is launched to record a loss of $22.7 million (A$35 million) this financial year.
The shutdown will also unlock $325.5 million (A$500 million) in funds for Qantas, which intends to invest in fleet renewal and redeploy 13 aircraft to expand routes across Australia and New Zealand.
Founded in 2004 to capture Asia’s burgeoning budget travel market, Jetstar Asia was jointly owned by Singapore-based Westbrook Investments (51 percent) and Qantas (49 percent). The airline earned a loyal customer base over the years, with many voicing shock and sadness at the announcement. Social media platforms were flooded with tributes, with one user calling it a ‘wonderful airline,’ and another thanking the carrier for ‘popularising the budget travel market.’
Jetstar Group CEO Stephanie Tully acknowledged the assistance of the airline’s staff, noting that, “We have an exceptional team who provide world-leading customer service and operational performance. Our focus is on supporting them and helping them find new roles in the industry.”
Qantas will resume servicing Asian destinations through Jetstar Airways, maintaining low-cost routes to countries including Thailand, Indonesia, and Japan.
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