Jetstar Asia's exit shrinks options for consumers, but unlikely to dent Changi's hub status
News analysis Jetstar Asia's exit shrinks options for consumers, but unlikely to dent Changi's hub status
SINGAPORE – Jetstar Asia's impending exit after more than two decades in Singapore is a blow to budget-conscious travellers, even if the low-cost airline's modest 3 per cent share of Changi Airport's traffic might suggest otherwise.
Although Changi remains well-served by other budget carriers on busy routes such as Bali and Jakarta, Jetstar Asia's departure will sever non-stop links to four emerging holiday spots.
The Singapore offshoot of Australia's Jetstar – which began operations in December 2004 – is the only airline that serves Okinawa in Japan, Wuxi in China , Labuan Bajo in Indonesia and Broome in Australia from Changi.
While Changi Airport Group (CAG) has said it would work with other airlines to restore connectivity , the prospect of losing non-stop connections to these cities comes at a time when Singapore is looking to aggressively expand the number of destinations linked to Changi.
The airport is connected to about 170 cities worldwide, and the target is to surpass 200 cities by the mid-2030s, when Terminal 5 opens.
Maintaining as many air links as possible is good for airlines and consumers, especially when low fares are in the mix. This also strengthens Changi's competitiveness as a transit hub.
Jetstar Asia, which is 49 per cent owned by Australia's Qantas and 51 per cent by Singapore company Westbrook Investments, cited higher airport fees and aviation charges, as well as intensifying competition, as reasons it had become unsustainable to continue operations at Changi.
Mr Linus Benjamin Bauer, founder and managing director of aviation consultancy BAA & Partners, said rising costs are squeezing low-cost carriers.
'Many airlines still operate under pre-pandemic pricing models, but face a vastly more expensive cost base,' he said, adding that more exits or mergers, especially among smaller budget airlines, can be expected.
The writing had been on the wall for some time for Jetstar Asia.
It was the slowest of the three Singapore-based carriers – the others being Singapore Airlines (SIA) and its budget arm Scoot – to rebound from the Covid-19 pandemic. Its fleet of 13 Airbus A320 aircraft is down from 18 before the pandemic.
Its move from Changi's Terminal 1 to Terminal 4 in March 2023 – which the airline protested publicly – also lengthened connecting times for passengers transferring to Qantas or its partner airlines.
T4 is a distance from T1, where Qantas operates, for instance.
When Singapore announced its latest round of airport fee hikes in November 2024 to fund improvements to Changi Airport and defray rising costs , Jetstar Asia had warned the increases would have an impact on its ability to offer low fares. It also noted that most of CAG's planned upgrades do not apply to T4, where it operates.
Under the new fee structure, landing, parking and aerobridge charges for narrow-body jets such as the A320 will rise yearly, climbing from about $1,200 per landing before April 2025 to $1,725 in April 2030. Passenger fees will also go up in stages until the end of the decade.
Passenger fees at Changi are already steeper than those in regional hubs such as Bangkok.
While such costs are seen as necessary to help airports fund infrastructural improvements to meet future demand, the increases have made it increasingly difficult for low-cost carriers such as Jetstar Asia to keep air fares low – their key selling point – without passing the extra costs on to customers.
'Singapore has become a high-cost environment for a low-cost carrier, and Qantas Group and Jetstar feel they can get better returns on their assets in other markets,' said Mr Mayur Patel, Asia head at consultancy OAG Aviation.
It does not help that in some cases, full-service carriers such as SIA can also offer low fares if tickets are booked early. This is because they have the flexibility of deploying wide-body or narrow-body aircraft, depending on demand.
After its closure, Jetstar Asia's 13 planes will be redeployed progressively across the Qantas Group to support fleet renewal and growth in Australia and New Zealand in line with demand.
The low-cost airline's closure comes as global demand for air travel remains strong.
Airlines are expected to fly a record 4.99 billion passengers in 2025 – a 4 per cent increase from 2024 – according to the latest forecast from the International Air Transport Association. The Asia-Pacific region is driving this growth.
So why has Jetstar Asia struggled to take advantage of this?
This has partly to do with the intensity of competition on seven of the 16 routes that it serves, which are operated by at least three other airlines, data compiled by Mr Patel showed.
Singapore-Bali is served by nine airlines including Jetstar Asia, Singapore-Jakarta by eight, and Singapore-Kuala Lumpur by seven.
Even fellow low-cost carrier AirAsia has scaled back on some routes of late, likely due in part to higher operating costs. It dropped its Singapore-Ipoh and Singapore-Phuket services, and cut back flights to Bangkok's Don Mueang Airport earlier in 2025.
Jetstar Asia's exit leaves SIA and Scoot as the only Singapore-based carriers.
While consumers will have one less option, choices still abound, with one-fifth of the 100 airlines at Changi being low-cost carriers. Overall, they serve more than half of the 170 cities that the airport is connected to.
Mr Patel said any connectivity gaps left by Jetstar Asia's exit can be filled only in the short to medium term by other carriers.
This is due to delays in the delivery of new aircraft and the time needed for capacity changes.
Ultimately, Jetstar Asia's withdrawal from Singapore will shrink the choices available to consumers, particularly those eyeing the non-stop links it served exclusively.
But its limited market share means that the impact on Changi's standing as a hub will likely be minimal.
Kenneth Cheng is assistant news editor at The Straits Times. He oversees transport coverage, spanning the land transport, aviation and maritime sectors.
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Unlike, say, Bangkok, Tokyo and Seoul – thriving gourmet hubs boasting legions of home-grown chefs lauded for their work with local ingredients and heritage – Singapore is largely dominated by foreign-born chefs, who have been credited with raising the bar and adding vibrancy to the local dining scene. Whether this puts local talent at a disadvantage is a topic for debate. Among other things, Singaporean chefs struggle with identity issues, and winning over diners or investors who are more enamoured of their 'imported' counterparts. As one pundit quips: 'When a Japanese man touches a slice of fish with his bare hands, it becomes gold. But when the hawker doesn't wear a mask, the diners complain to SFA (Singapore Food Agency).' At the same time, a beleaguered food and beverage (F&B) industry – marked by restaurant closures, chefs dropping out to work in other fields or move into private dining, and the high costs of running a restaurant – further reduces the talent pool, making it even harder for existing and new chefs to thrive. ' Local chefs sometimes have to work harder to prove their ideas are worth backing, especially if they're trying to do something that doesn't fit neatly into existing categories. ' — Wee Teng Wen, founder of The Lo & Behold Group However, rewards await those who persevere, as in the case of Tam, who prides himself on being 'one of the few true-blue Singaporean chefs who worked from the bottom to where I am, in my own home country and in spite of all challenges'. A NEWSLETTER FOR YOU Friday, 2 pm Lifestyle Our picks of the latest dining, travel and leisure options to treat yourself. Sign Up Sign Up Investing in local talent That investors are skittish about putting money on local talent goes without saying. Tam notes how he had approached two F&B groups with his idea for Willow, but did not hear from one and was rejected by the other for being too young. His luck changed when he met Lim Kian Chun, then in the early days of Ebb & Flow Group, but even he 'had doubts about me, being local and unproven'. After much convincing, Lim invested a modest amount, and the rest is history. Wee Teng Wen, the founder of The Lo & Behold Group who is known for his support of local talent, observes that 'it's not always a level playing field' when it comes to restaurant investment. 'For a long time, chefs with international experience or big-name mentors tend to get more attention, as larger hospitality players tend to rally around something familiar or already validated. Local chefs sometimes have to work harder to prove their ideas are worth backing, especially if they're trying to do something that doesn't fit neatly into existing categories.' Law Jia-Jun, chef-owner of Province. PHOTO: PROVINCE 'There is pressure to prove that my food can be seen as comparable or equal to that of non-Singaporeans, especially those who are known at home and abroad,' says Law Jia-Jun, who opened his restaurant, Province, in 2023. 'Like it or not, platforms like the Michelin guide shape public and investor perception, and most of the Michelin restaurants here are helmed by foreign chefs.' So far, no Singaporean chef-fronted restaurant holds more than one star, and this feeds 'a certain perception about who is 'worthy' of recognition'. Province serves progressive Singaporean cuisine. PHOTO: PROVINCE He recalls a recent conversation with another chef who had plans to open an izakaya. 'Their investors felt that it would be easier to market the concept if it were fronted by a Japanese chef. That struck a chord with me, because it seems like there's something about Singaporean culture that is unsure how to value things if there isn't some foreign pedigree burnishing its credibility or desirability.' Defining a Singaporean chef For veteran chef Han Li Guang of the one-Michelin-starred Labyrinth, it has been a long journey of 11 years to evolve as a Singaporean chef. Even today, there is still a stigma about paying a premium for what locals see as 'mod-Sin', or elevated hawker food. 'While Singaporeans are becoming more receptive to modern ways of interpreting heritage food, it's not to the extent of Seoul or Bangkok, where the population is much bigger,' says Han. Also, Thai and Korean cuisines have longer histories as well as more defined characteristics and flavours, unlike Singapore cuisine which is 'all over the place'. It is 'very hard to nail down, but at the same time, there's a lot of content out there, and that's what helps to keep Labyrinth unique'. He notes that skills-wise, Singaporean chefs score highly, thanks to the many Michelin-starred restaurants that give them the exposure and the training. What they lack is Asian cooking skills, which Han gripes is missing from culinary schools – which still emphasise Western techniques. ' It seems like there's something about Singaporean culture that is unsure how to value things if there isn't some foreign pedigree burnishing its credibility or desirability. ' — Law Jia-Jun, chef-owner of Province 'I had two young chefs who quit after three months because they were trained in French cooking and couldn't get used to using a wok. So they wanted to return to their comfort zone,' he says. Which begs the question: Who is more Singaporean? One who is inspired by their roots, or one who rises to the top ranks of highly acclaimed Michelin-starred restaurants? The two are not necessarily mutually exclusive, says Law, who feels he would consider himself a Singaporean chef even if he had chosen to stay in a Western kitchen instead of striking out on his own with Province. He acknowledges he has chosen a more 'difficult' path because 'there is no clear blueprint for what we're trying to do. But that's also our mission – to discover what Singaporean cuisine is and develop an approach to cooking at a fine-dining level that is more local and regional'. Ng Guo Lun, head chef of Jaan by Kirk Westaway. PHOTO: JAAN For Ng Guo Lun, his achievement comes from making his way up from kitchen assistant at Willin Low's Wild Rocket after national service, to head chef at the two-Michelin-starred Jaan by Kirk Westaway, working next to its eponymous chef-owner. While other chefs have helped to shift mindsets about local food, 'I've chosen a different path, but not because I don't believe in Singaporean cuisine'. 'This is what I want at this point in my career, which is to excel in the kitchen while expressing my own style in other ways,' he adds. Winning the hearts of Singaporean diners While progress is still slow, 'there's a growing appreciation for chefs who are rooted here and have something original to say about Singaporean food', says Lo & Behold's Wee. A case in point would be the group's newest restaurant, Belimbing, helmed by 'new-gen' chef Marcus Leow. Marcus Leow of Belimbing. PHOTO: BELIMBING 'The response has been a lot better than expected,' says Leow, whose cuisine explores local recipes and South-east Asian ingredients. While he agrees that there is pressure on Singaporean chefs to reinterpret local cuisine, 'it gives me stronger motivation to get better at what I do'. Grilled firefly squid at Belimbing. PHOTO: BELIMBING Perhaps one of the biggest success stories would be Mustard Seed, the counter-only, perennially booked-out restaurant run by Gan Ming Kiat. The chef, who has won hearts with his unique version of Singaporean food with a Japanese accent, was recently joined by fellow local chef Desmond Shen – well-known for his innovative cooking style. Gan Ming Kiat of Mustard Seed. PHOTO: KERRY CHEAH 'Running a business with honesty and sincerity goes a long way,' says Gan of his success from Day One. 'When we started, there weren't many modern Singaporean tasting menu-style restaurants around, so we were able to start strong and build on that momentum.' Candied orange kuih bingka at Mustard Seed. PHOTO: KERRY CHEAH Schooled in kaiseki and Peranakan cuisine, he credits his training in Asian rather than Western kitchens for creating a cuisine that 'hits the sweet spot of being tasty and creative enough without being too intellectual'. 'Singaporeans relate to this better.' Market realities and carving out a niche While Gan had a first-mover advantage, 'to come out and do something of your own now is definitely much harder than when I first started out', he says. 'You're dealing with higher costs, increased diner expectations, a highly competitive dining scene, and also a dismal post-Covid climate. Dining out is now a lower priority.' MJ Teoh of the heritage-inspired Native got a full reality check when the restaurant closed down after three years, even though the original cocktail bar remains. One of the few female chefs in Singapore, Teoh laments that 'one of the mistakes we made was not to differentiate ourselves from the bar, because people thought we just did bar snacks and didn't bother to give us a try'. MJ Teoh, former head chef of Native. PHOTO: MJ TEOH She adds: 'We weren't making enough money and the rent was way too high. Amoy Street is very competitive and in the last few years, we noticed people are just not spending as much. A lot of us in the industry felt the shift – sales were down even in bars that were thriving.' MJ Teoh's cooking is inspired by her heritage. PHOTO: MJ TEOH Teoh is part of a cohort of young chefs who are trying to find their way in this uncertain climate, even going through a period of soul-searching. She was so burnt out, she says, that she stopped working for a few months. Recently, she started giving pasta-making lessons and does private dining in client's homes. The plan is to start a dining space in her own home and while she is not ruling out running a restaurant again with a new investor, she questions if it is a practical move in the current climate. Growing the talent pool While market uncertainty has led to attrition as chefs leave the industry completely to embark on totally different careers, the numbers enrolling in culinary schools have grown, says Ian Goh, a culinary arts lecturer at the Institute of Technical Education (ITE). Ian Goh, culinary arts lecturer at ITE. PHOTO: IAN GOH 'Cohort-wise, we've been seeing a consistent rise in the number of students enrolling in our culinary programmes,' he says. 'Over the past few years, there's been a noticeable shift where more (young people) are interested in building long-term careers in F&B.' The change was apparent after Covid-19, when home-based businesses sprouted up. That taste of entrepreneurship, Goh says, spurred their interest in making a career of it. The challenge, he adds, is matching chefs' passion with the realities of the industry – namely 'long hours, high pressure, and sometimes, toxic work environments'. Despite more work-life balance in some progressive kitchens, 'the industry still has a long way to go'. But he is also seeing how the younger generation is 'redefining what it means to be a culinary professional', going beyond conventional cooking to explore 'food styling, research and development, sustainable food systems, entrepreneurship and even food history'. Plus, there are platforms for local chefs to shine, says Nicola Lee, the South-east Asia academy chair for the World's 50 Best Restaurants guide as well as its Asian equivalent. While her role pertains to the voting for the guides, she is a staunch supporter of local talent. ' Investors today are increasingly interested in strong, distinctive chef-driven narratives, regardless of nationality. What matters is the authenticity of the story and the quality of execution. ' — Veteran chef Ace Tan Besides Han Li Guang and Jason Tan, pastry chefs such as Cheryl Koh of Tarte and Louisa Lim of Odette have been recognised among the 50 Best recipients, along with Janice Wong. ITE's Ian Goh was also the 2022 winner of the San Pellegrino Young Chef Academy for Asia. Not to mention the Singaporean chefs making waves overseas include Kenneth Foong of Noma (Denmark), Mathew Leong of Re-Naa (Norway), and Jimmy Lim of JL Studio (Taiwan). The way ahead 'We need to show that cooking local food, especially at a higher level, is a viable and rewarding career path,' says Wee of Lo & Behold. 'Young chefs often gravitate towards other cuisines... because of what they're exposed to or (because) certain cuisines are more globally recognised, and that makes hiring for local restaurants an even bigger challenge.' He adds: 'To shift that mindset, we need to spotlight chefs doing meaningful work with local food and show that there's creativity, depth, and a future in it. Visibility helps, but it needs to be matched by structural change. That includes reforming culinary school curriculums so local cuisine is taught with the same rigour as European cooking. 'We also need to shift the conversation from preservation to innovation, and cultivate an audience that's curious, open, and willing to value new expressions of Singaporean food.' For veteran chef Ace Tan, who launched his Chinese-inspired restaurant Asu last year, the key is not to pigeonhole the definition of a 'Singaporean restaurant'. 'It's more accurate to consider it as a Singaporean chef presenting their interpretation of Asian, cross-cultural cuisine. The landscape has evolved significantly since I started this path in 2015 (with the short-lived Restaurant Ards) – there's now a growing appetite and appreciation for contemporary Asian concepts across East Asia,' he says. 'Investors today are increasingly interested in strong, distinctive chef-driven narratives, regardless of nationality. What matters is the authenticity of the story and the quality of execution.'
