Jetstar Asia to Close Operations After 20 Years
In a move that has sent shockwaves through the aviation industry, budget airline Jetstar Asia is set to cease operations this summer, after over two decades of flying. The Qantas Group, which owns Jetstar Asia, announced a "strategic restructure" on June 11, which includes the closure of the Singapore-based low-cost airline.
According to a statement released by the Qantas Group, Jetstar Asia will reduce its flight schedule over the next seven weeks, with operations ceasing entirely on July 31. The airline, which was founded in 2003, was expected to make a loss of AU$35 million this financial year. The closure is part of a broader restructuring effort by the Qantas Group, which will see the company invest AU$500 million in renewing its aircraft fleet.
The decision to close Jetstar Asia has been attributed to rising supplier costs, high airport fees, and intensified competition in the region. The airline’s parent company has stated that these factors have made it impossible for Jetstar Asia to continue operating profitably. "Jetstar Asia has been a pioneering force in the Asian aviation market for more than 20 years, making air travel accessible to millions of customers across Southeast Asia," said Qantas Group CEO Vanessa Hudson. "We are incredibly proud of the Jetstar Asia team and the work they have done to deliver low fares, strong operational performance, and exceptional customer service."
The closure of Jetstar Asia will impact 16 routes across Asia, including flights connecting Singapore with destinations in Malaysia and the Philippines. Affected customers will be offered full refunds or re-accommodated onto alternative airlines. Jetstar Airways and Jetstar Japan services in Asia, as well as all of Jetstar Airways’ international services in and out of Australia, will be unaffected by the closure. Up to 13 Jetstar Asia Airbus A320 aircraft will be redeployed for routes across Australia and New Zealand.
The Qantas Group has assured that employees will be provided with redundancy benefits following the announcement. CEO Vanessa Hudson also expressed her gratitude to the Jetstar Asia team, saying, "I want to sincerely thank and acknowledge our incredible Jetstar Asia team, who should be very proud of the impact they have had on aviation in the region over the past two decades."
As reported by The Independent, the closure of Jetstar Asia marks the end of an era for the low-cost airline, which has been a significant player in the Asian aviation market for over 20 years. The Independent’s reporting on this story has provided valuable insights into the circumstances surrounding the closure, and the impact it will have on customers and employees.
In a statement, The Independent noted that "The Qantas Group blamed rising supplier costs, high airport fees, and ‘intensified competition in the region’ for the closure of the low-cost airline." This sentiment was echoed by CEO Vanessa Hudson, who cited the significant increase in supplier costs as a major factor in the decision to close Jetstar Asia. With this closure, the aviation industry is set to undergo a significant shift, and The Independent will continue to provide updates and analysis on this developing story.
The Qantas Group’s strategic restructure is set to have far-reaching implications for the airline industry, and The Independent will be keeping a close eye on developments. For more travel news and advice, readers can listen to Simon Calder’s podcast.
