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CNA
2 days ago
- Business
- CNA
Jetstar Asia closure could lead to higher fares for regional flights, say analysts
SINGAPORE: Jetstar Asia's closure could result in higher fares for flights out of Singapore to popular destinations around the region, analysts told CNA. The Singapore-based budget airline announced on Wednesday (Jun 11) that it will be ceasing operations on Jul 31 following rising supplier costs, higher airport fees and intensifying competition among low-cost carriers. "In general, the slight reduction in capacity, coupled with the demand, could drive (fares) up," said Mr Alfred Chua, Asia air transport editor for aviation publication FlightGlobal. "I expect this could happen on the metro cities' routes (such as) Bangkok, Kuala Lumpur and Jakarta, where they compete with other low-cost carriers." Mr Joshua Ng, a director at Alton Aviation Consultancy, said: "I think what we'll see (is) that in the near term, there's going to be a likely price increase as some of these passengers that Jetstar Asia was supposed to fly are now going to fly on other airlines." As more seats on other airlines are filled, prices will rise, he added. But in the medium to longer term, airlines will assess their strategies and potentially increase their flight frequencies to the routes that Jetstar Asia used to operate. This would cause prices to return to where they were before, he said. "This will be a matter of supply and demand in the market, where the prices of tickets will eventually shake out." Apart from the prospect of rising fares, the loss of Jetstar Asia also means that there will be four exclusive routes that will no longer be served – as things currently stand. Of the 16 destinations Jetstar Asia serves, 12 are also served by 18 other airlines, but four – Broome in Australia, Labuan Bajo in Indonesia, Okinawa in Japan and Wuxi in China – are not. "Their exit will mean some of these points will be left without any direct links to Singapore," said Mr Chua. "This in turn impacts, in some way, Changi's plans to grow its international city pairs." During the groundbreaking ceremony for Terminal 5 last month, Prime Minister Lawrence Wong said that Changi Airport aims to grow its city links from over 170 currently to more than 200 in the mid-2030s. Mr Chua said the closure of Jetstar Asia is unlikely to affect plans for Terminal 5 since it is not a very big player in Singapore. He added that the airline was also unlikely to move to the new terminal. CAN THE GAP BE FILLED? Mr Mayur Patel, head of Asia at aviation data consultancy OAG Aviation, said that the closure of Jetstar Asia will leave a temporary gap in Changi Airport's passenger capacity and number of scheduled flights. According to Changi Airport Group, Jetstar Asia operates about 180 weekly services at the airport. In 2024, the airline carried approximately 2.3 million passengers at Changi Airport, accounting for about 3 per cent of Changi's total passenger traffic that year. "I would say those slots can be replaced but that will take time under the current conditions," he said. These conditions include supply delays in new aircraft, which has held airlines back on their expansion plans, as well as the relatively higher airport fees at Changi. He said that some of the capacity may be replaced by Indian or Chinese carriers, which are seeing high traffic volumes from their respective markets into Singapore. "There will be repivoting and shifting of airlines that will take up those slots," he said. He added that Terminal 4, which Jetstar Asia operates out of, would "feel a bit empty" in the meantime. Mr Chua added that for the unique city links served by Jetstar Asia, other low-cost carriers like Scoot could step in to fill the demand. "I say Scoot because they have the Embraer E190-E2 (planes), which can help 'right-size' some of the thinner routes that a Jetstar Asia A320 was not able to fill," he said. Scoot is set to have all nine Embraer E190-E2 jets – a smaller aircraft than the A320 – added to its fleet by the end of this year. For other regional destinations that are not unique to Jetstar Asia, Alton Aviation's Mr Ng said Scoot, as the other Singapore-based low-cost carrier, is the "obvious candidate" to step in. It is also "quite conceivable" that airlines such as AirAsia and Citilink would want to take over Jetstar Asia's slots from Singapore to Kuala Lumpur or Jakarta, he said. HOW DID IT COME TO THIS? Challenges facing Jetstar Asia, which is part of Australia's Qantas Group, were touched on by the airline's chief executive officer John Simeone during an interview with CNA last year. He said that there has been increases in the company's costs, which it was working on. Mr Patel and Mr Chua said that the writing was on the wall when Jetstar Asia made the well-publicised move to Terminal 4 in 2022. "As a member of the Qantas Group, the airline was meant to help feed traffic to the Qantas network through Singapore," said Mr Chua. "Qantas operates from Terminal 1, as (do) most of Jetstar Asia's codeshare partners, and so the shift has made it less convenient for the connecting passengers." In 2022, Jetstar Asia went public with its discontent with CAG's decision, but eventually agreed to move to Terminal 4. CAG said then that discussions had started in 2019 and that it had been experiencing tight capacity during peak hours. It added that moving Jetstar to Terminal 4 would "provide headroom" to support airlines' growth at Changi Airport. Mr Ng said that before the COVID-19 pandemic, around 10 per cent of customers on Qantas flights had a connecting Jetstar Asia flight. That figure is now around 5 per cent. Mr Patel said that the way the episode played out may have made Jetstar Asia feel like they were "not part of the ecosystem" at Changi Airport. "That's something Jetstar evaluated and (decided) they can put their assets somewhere else to get better returns," said Mr Patel. "Why focus on something where we don't get acknowledged?" COSTS Mr Chua said that Jetstar Asia's departure signals that Changi Airport may not necessarily be ideal for low-cost airlines to operate from. Jetstar Group CEO Stephanie Tully said on Wednesday that the airline has seen "really high cost increases" at its Singapore base, including double-digit rises in fuel, airport fees, ground handling and security charges. CAG and the Civil Aviation Authority of Singapore (CAAS) announced in November last year that airlines will have to pay higher landing, parking and aerobridge charges from April 2025. They said then that they had engaged the major airlines on the revised charges, and would give a 50 per cent rebate on the increases for the first six months. Mr Chua said: "Cost is one issue, but also the availability of slots, especially before we have a three-runway system, does not make sense for a small foreign low-cost carrier. "The added cost, potential lack of attractive slots and connectivity, will not be favourable to smaller low-cost carriers." Could this dull Singapore's shine as a regional aviation hub? Mr Chua said that Singapore will still attract new airlines, even with Jetstar Asia's closure. "Operating from other airports could be at lower cost, but it's also not Singapore," said Mr Chua. "There are no alternative 'Singapore' airports," he added. "If they want to operate to Singapore, it will be to Changi, and if they see there is demand for them to operate here, they will." Singapore remains an attractive destination for business and leisure visitors, and people in Singapore also have a high propensity to travel, said Mr Ng. "I would say that for airlines, whether you're full-service carriers or low-cost carriers, Singapore is naturally high on the list of airports that they would want to serve," he said, noting that Changi Airport is the gateway to Singapore. Airport fees and supplier costs may be higher, but it is probably worth it for the airlines, he said.
Newsweek
08-05-2025
- Politics
- Newsweek
India and Pakistan Air Wars: How Two Air Forces Compare
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. India and Pakistan, the South Asian nuclear-armed neighbors that have engaged in hostilities, including a reported large-scale aerial battle, maintain a sizable fleet of fighter jets, consisting of aircraft supplied by the United States, Russia, China and France. Why It Matters India, which is a key Indo-Pacific partner of the U.S., launched Operation Sindoor, targeting alleged militant sites in Pakistan-controlled territory in retaliation for an attack that occurred in India-administered Kashmir last month, where 26 people were killed based on religion. Pakistani Prime Minister Shehbaz Sharif has asserted that the country's military shot down five Indian fighter jets. While India has not confirmed the losses, a "high-ranking" French intelligence official told CNN that one of the downed aircraft was the French-made Rafale. A senior Pakistani security source also claimed to CNN that the aerial battle, often referred to as a "dog fight," between Pakistani and Indian fighter jets involved 125 aircraft and lasted for more than an hour, making it one of the "largest and longest in recent aviation history." What To Know The Indian Air Force possesses three major fighter aircraft to execute strikes and defend the country's airspace. According to the specialist outlet FlightGlobal, the Rafale fighter aircraft is the "highest profile asset" for New Delhi's air force, which has received 36 jets in total. A child looks at an Indian Air Force Rafale fighter aircraft at Yelahanka Air Force Station in Bengaluru on February 16, 2023. A child looks at an Indian Air Force Rafale fighter aircraft at Yelahanka Air Force Station in Bengaluru on February 16, Foreign Minister Ishaq Dar on Wednesday said the downed Indian fighter jets included the Rafale, while the country's army said it shot down three Rafales. India operates about 260 Russian-made Su-30MKI and 65 MiG-29 fighter jets. Russia has historically been a major weapon supplier to India, which was the biggest arms exporter to the South Asian power between 2019 and 2023, accounting for 36 percent of total imports. Pakistan's major fighter jets are related to China, including the Chinese-made J-10CE and the JF-17, which was developed jointly by the two countries. According to Chinese media, Pakistan has ordered 36 J-10CE jets, of which the first 20 have been in service. Pakistan's foreign minister said that the J-10CE jets were employed to shoot down Indian fighter aircraft, and the Chinese ambassador was informed about the military action. Pakistani J-10CE fighter jets perform ahead of Pakistan's national day parade in Islamabad on March 21, 2024. Pakistani J-10CE fighter jets perform ahead of Pakistan's national day parade in Islamabad on March 21, 2024. AAMIR QURESHI/AFP via Getty Images Pakistan Today reported that the South Asian country had a fleet of 156 JF-17 jets as of last September, which it called a "symbol of the relationship" between Islamabad and Beijing. The U.S. designates Pakistan as a major non-NATO ally, with a 76 F-16 fighter aircraft fleet. Reuters previously reported that the "end-user agreements" have limited Pakistan's use of the American jets as part of the two sides' arms sale agreements. In total, India has 616 combat aircraft, while Pakistan has a fleet of 387 jets, according to FlightGlobal's World Air Forces directory for 2025. What People Are Saying The War Zone wrote on May 7: "And while the loss of a Rafale, especially to a Chinese-designed fighter, if confirmed, would be a huge propaganda win for Pakistan and, to some degree, China, the reality is that modern air combat is far more than a simple fighter-versus-fighter affair." FlightGlobal wrote on May 7: "Based on raw numbers, the Indian air force has an edge against the Pakistani air force, but Pakistan may have a qualitative advantage conferred by the [J-10CE] and JF-17 fleets. In a war, New Delhi would also need to set some aircraft aside to guard its northern flank against China; Pakistan would be able to throw its entire active fleet into the fray." What Happens Next It remains to be seen whether Indian and Pakistani air forces will have further "dog fights" in the coming days or release additional details on their combat losses of fighter aircraft.
Iraqi News
01-05-2025
- Business
- Iraqi News
Airbus delivers first pair of Caracal combat helicopters to Iraq
Baghdad ( – As part of a deal reached with Airbus in September 2024 to purchase 12 multi-role combat helicopters, Iraq received on Wednesday the first pair of Caracal H225M. The Iraqi Minister of Defense, Thabet Al-Abbasi, received the first two helicopters at the airframer's headquarters in Marignane in southern France on April 30, according to Flight Global, a global aviation community's primary source of news. The 11t-class H225Ms, which will be flown by the Iraqi Army Aviation Command, will take the place of the older Mil Mi-17s and be employed for a variety of tasks such as fire support, attack, tactical troop transport, special operations, and counter-terrorism. Unknown numbers of the Iraqi Caracals will be modified with the HForce modular weapons system from Airbus Helicopters. The step followed Al-Abbasi's meeting on Tuesday with the French Minister of the Armed Forces, Sebastien Lecornu, in the Ministry of Armed Forces in the French capital, Paris, where they discussed different issues, including armament deals between the two countries. In addition to the helicopters' deal, Al-Abbasi and Lecornu discussed deals between Iraq and France to equip the Iraqi Air Defense Command with air defense radars. Iraq and the major European aviation company Airbus reached a deal in early September to buy 14 military helicopters, including 12 Caracal H225M multi-role combat helicopters. A ceremony attended by the Iraqi Minister of Defense, officials from Airbus, and the French Ambassador to Iraq, Patrick Durel, was held in Baghdad to sign the deal, according to AFP. During a meeting held in May with Eric Chevalier, the former French ambassador to Iraq, Iraqi Prime Minister Mohammed Shia Al-Sudani stated that Iraq is open to productive collaborations with French businesses, especially when it comes to enhancing the defensive capabilities of the armed forces. Al-Sudani met with officials from Thales Group, Dassault Group, and Airbus in Paris in January 2023 to discuss the potential delivery of military helicopters, radars, and Rafale aircraft to Baghdad. Additionally, Rafale fighter jets participated in joint exercises between the French and Iraqi air forces in Iraq in May.
