Plans to enhance efficiency of last-mile deliveries underway
Dedicated delivery bays and collection lockers could be made mandatory for new private condominium developments this year. The move by a tripartite workgroup aims to enhance efficiency of last-mile deliveries. This follows an increased volume of e-commerce and food deliveries in the past five years. Claudia Lim with more.
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Independent Singapore
4 hours ago
- Independent Singapore
Jetstar Asia to shut down after two decades, citing soaring costs and stiff competition
SINGAPORE: Singapore's skies will soon be a little quieter. After more than 20 years of flying budget-conscious travellers across Asia, Jetstar Asia—Singapore's homegrown arm of Australia's Qantas Group—will cease operations on July 31. The move comes amid what the airline describes as 'really high cost increases' and an inability to compete with regional low-cost carriers in an increasingly crowded market. A final descent The closure, announced by Qantas on June 11, is set to impact more than 500 employees and 16 regional routes, including links to Malaysia, Indonesia, Japan, and emerging tourist hotspots like Wuxi and Labuan Bajo. Jetstar Asia's fleet of 13 Airbus A320s will be progressively redirected to Australia and New Zealand as part of Qantas' broader fleet renewal programme. Group CEO Vanessa Hudson said the airline's cost base had 'materially changed,' with some supplier costs surging by as much as 200 per cent. 'We are currently undertaking the most ambitious fleet renewal programme in our history,' she added, noting that nearly 200 new aircraft are on order. See also Govt says RTS Link fares will be determined by operator Jetstar Asia is expected to post a loss of A$35 million this financial year, adding pressure to Qantas' strategic priorities. Rising costs, rising competition Jetstar Asia's struggles didn't happen overnight. For months, it had been battling headwinds on multiple fronts: escalating airport charges, costly ground handling, rising fuel prices, and stiff competition from Southeast Asia's budget heavyweights like AirAsia and BatikAir. CEO of Jetstar Group, Stephanie Tully, told reporters the airline's Singapore base had become increasingly unsustainable. 'Double-digit cost increases in fuel, airport fees, ground handling and security have significantly undermined our ability to remain competitive,' she said. Compounding the pressure was Jetstar Asia's move to Changi Terminal 4 in March 2023—a shift the airline initially resisted. Tully admitted the relocation 'had an impact' on the business, noting that Terminal 4 is not linked to the others via MRT, making transfers more cumbersome. What happens next? Jetstar Asia has reported that it will continue flying for the next seven weeks. Passengers with tickets on cancelled flights will be offered full refunds, and efforts are underway to reroute affected travellers. Those holding Jetstar vouchers will be contacted in August for monetary reimbursement. See also We screwed up in Japan, says Tony Fernandes Qantas has said six of Jetstar Asia's planes will be used to replace leased aircraft in Australia, while four will take over ageing aircraft currently serving mining routes. Two more will be deployed to Jetstar in Australia and one to New Zealand, potentially opening new routes and creating over 100 local jobs. International operations of Jetstar Airways (Australia) and Jetstar Japan remain unaffected. What does it mean for Singapore Changi Airport may feel the turbulence. Jetstar Asia accounted for 3 per cent of Changi's traffic last year, serving key Southeast Asian cities as well as lesser-flown destinations. According to an aviation editor, Jetstar Asia's exit could leave some of these destinations without any direct links to Singapore, inevitably affecting the airport's ambition to grow its international city pairings. While airlines like Scoot—armed with a growing fleet of smaller Embraer jets—could potentially fill the gaps, the loss is nonetheless significant. The Civil Aviation Authority of Singapore (CAAS) acknowledged the closure but reaffirmed Changi's resilience. It noted that in 2024 alone, the airport added 11 new city links and welcomed eight new airlines, including four low-cost carriers. Still, the impact on the broader landscape is undeniable. Smaller foreign airlines operating out of Changi face the same structural challenges—rising costs, less-than-ideal operating slots, and increased competition from national carriers and well-backed players. End of an era Jetstar Asia's closure marks the end of a uniquely Singaporean chapter in regional aviation. Born out of Qantas' vision to capture Asia's booming budget travel market, the airline played a pivotal role in democratizing air travel across the region. Now, it becomes a case study in the volatility of the low-cost carrier model—especially in high-cost, tightly regulated hubs like Singapore. As Jetstar Asia prepares for its final descent, one thing is clear: the economics of budget air travel in Southeast Asia are shifting, and even long-standing players aren't immune to the turbulence.
Independent Singapore
4 hours ago
- Independent Singapore
Koh Brothers Eco's subsidiary to build underground tunnels at Changi's upcoming T5 in S$999M JV deal
Phot: Depositphotos/tang90246 SINGAPORE: Koh Brothers Eco Engineering's subsidiary, Koh Brothers Building & Civil Engineering Contractor (KBCE), has been awarded a S$999 million contract by Changi Airport Group (CAG) to build underground tunnels at Changi Airport's upcoming Terminal 5 (T5). The project will be carried out through a joint venture with Penta-Ocean Construction, according to the company's press release on Tuesday (June 10). KBCE will be in charge of constructing intra-terminal tunnels that link different parts of Terminal 5. The tunnel system will include several sub-tunnels that will house key infrastructure to support airport operations, including the automated people mover system, baggage handling system, and a common services tunnel (CST) for utilities such as electrical power, communication systems, and water services. The works will also include a ventilation building to support the CST, along with provisions for a future underground infrastructure tunnel. Paul Shin, Koh Brothers Eco's CEO, said, 'We are honoured by the trust placed in KBCE and Penta Ocean for this mega project by airport operator Changi Airport Group (CAG). Securing this contract marks our deepened collaboration with CAG and another milestone in our commitment to supporting Singapore's transport infrastructure.' In early May, Changi Airport Group awarded S$4.75 billion in contracts for substructure and airside infrastructure works at T5 . The new terminal, expected to open in the mid-2030s, officially broke ground on May 14, 2025, and will help Changi Airport handle 50 million more passengers each year . /TISG Read also: SATS gears up for Changi Terminal 5 with S$250M in ground and cargo upgrades Featured image by Depositphotos (for illustration purposes only)
Straits Times
6 hours ago
- Straits Times
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. Join ST's WhatsApp Channel and get the latest news and must-reads.
