Jetstar Asia to cease operations on July 31 – here's how it impacts you
Like a bolt from the blue, Jetstar Asia announced today that it will permanently cease operations as of July 31. In a Facebook post, the airline stated that Jetstar Asia's (3K) flights will continue to operate on a progressively reduced schedule for the next seven weeks until its closure.
This may be alarming news for those with scheduled flights on Jetstar Asia. Is your route affected? Can you get a refund for existing tickets? Here's all you need to know about how Jetstar Asia's closure will impact you.
Why is Jetstar Asia closing?
In a press release published today, parent company Qantas Group stated that the closure of Jetstar Asia is due to "rising supplier costs, high airport fees, and intensified competition in the region, [which have] challenged the low-cost airline's ability to deliver returns comparable to the stronger performing core markets in the Group."
Qantas says it's expected to post a $35 million underlying loss in earnings before interest and taxes this financial year, prompting it and its majority shareholder, Westbrook Investments, to close the airline. Jetstar Asia's closure will unlock up to $500 million in fleet capital, which will be funnelled into Qantas Group's core businesses.
Which routes are affected?
16 intra-Asia routes operated from its Singapore base will be impacted by the closure of Jetstar Asia.
According to The Straits Times, these are the flights between Asian countries currently operated by Jetstar:
Singapore to Kuala Lumpur, Penang
Singapore to Jakarta, Bali, Medan and Surabaya
Singapore to Bangkok, Krabi and Phuket
Singapore to Manila
Singapore to Wuxi
Singapore to Okinawa
Singapore to Colombo
Jetstar Airways' domestic and international flights in Australia and New Zealand (JQ flight codes), as well as those operated by Jetstar Japan (GK flight codes), remain unaffected. Jetstar Airways will continue to fly from Australia to Asia and its popular destinations, including Singapore, Thailand, Indonesia, Vietnam, Japan, and South Korea.
What happens to my existing flight ticket?
Customers with existing bookings on flights after July 31 will be offered full cash refunds. The Group has also stated that it will look to reaccommodate customers onto other airlines where possible.
What about my Jetstar vouchers?
Similarly, those with Jetstar vouchers still valid after Jetstar Asia's closure on June 11 will be contacted in August for cash refunds.
What are the alternative low-cost airlines in the region?
Jetstar Asia's closure is a loss for customers, who now have fewer lower-cost options in the region. Nevertheless, alternatives exist – check out Scoot, which currently flies to over 70 destinations, and AirAsia, which has tons of affordable flights to cities across Asia.
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