Budget airline to close after 20 years
Budget airline Jetstar Asia is set to close this summer after over 20 years of operations.
The Qantas Group announced a 'strategic restructure' today (11 June), including the closure of the Singapore-based low-cost airline.
Jetstar Asia will reduce its flight schedule across the next seven weeks before operations cease on 31 July.
The airline, founded in 2003, was expected to make a AU$35 million loss this financial year.
According to the group, the closure of the intra-Asia airline will enable the Qantas Group to invest $500 million in renewing its aircraft fleet.
Up to 13 Jetstar Asia Airbus A320 aircraft will also be redeployed for routes across Australia and New Zealand.
The closure 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, said the group.
Jetstar Airways and Jetstar Japan services in Asia and all of Jetstar Airways international services in and out of Australia will be unaffected by the closure.
The Qantas Group blamed rising supplier costs, high airport fees and 'intensified competition in the region: for the closure of the low-cost airline.
Employees will be provided with redundancy benefits following the announcement.
Qantas Group CEO Vanessa Hudson said: '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.'
'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. This is a very tough day for them. Despite their best efforts, we have seen some of Jetstar Asia's supplier costs increase by up to 200 per cent, which has materially changed its cost base.'
'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.'
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