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The Star
12-06-2025
- Business
- The Star
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 three 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. 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 (US$935) 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 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 four 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. 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. - The Straits Times/ANN
Straits Times
11-06-2025
- Business
- 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.
The Age
10-06-2025
- Business
- The Age
From Queen of the Skies to scrap metal: The life and death of giant planes
At 19, the world's oldest commercial A380 is hardly ancient but – in aircraft years – it's reached an age at which most large jets (the affectionate nickname for all wide, long bodied aircraft) retire to the great boneyards of the desert. Not this one though: after a five-year hiatus, it's back ploughing the skies for Emirates, according to The European Union Aviation Safety Agency (EASA) says that most planes have a life cycle of about 25-30 years, but that includes a long period of research and development before their first commercial flights take off. If you find yourself on a comparatively ancient aircraft, don't worry: planes are subjected to frequent tests to ensure safety and usually retire because they become less commercially competitive rather than dangerous. The birth of a giant aircraft A wide-body aeroplane's journey involves a long period of incubation and subsequent nurturing before it can go out into the world. 'The journey from the design board to commercial service for a commercial aircraft is one of the most complex undertakings in modern industrial engineering,' says Linus Benjamin Bauer, founder and managing direction of the aviation consultancy BAA & Partners. 'Typically, the aircraft development programme takes up to 15 years to bring a new aircraft such as the A380 to market.' The original jumbo, Boeing's 747, was conceived in 1966 and began to fly commercially four years later thanks to tight deadlines imposed by its first purchaser, Pan Am. But, before paying passengers can get onboard, planes face 'initial conceptual studies, customer consultations, digital modelling, prototype development and regulatory certification,' according to Bauer. 'Certification itself is particularly rigorous,' he says. 'Manufacturers must demonstrate compliance with thousands of airworthiness requirements. Each new aircraft must pass a full-scale evacuation test – where all passengers must exit within 90 seconds using only half the available exits. Structural integrity is validated through static testing, where airframes are pushed 50 per cent beyond their design limits, and fatigue testing, which simulates decades of flight cycles.' These tests can make or break a plane's popularity: when they uncovered issues with weight in some of Boeing's earliest 787 aircraft (nicknamed the 'Terrible Teens'), the planes were rejected by airlines including All Nippon Airways and Royal Air Maroc, according to the website (though they now take to the skies with Ethiopian and Air Austral).
Sydney Morning Herald
10-06-2025
- Business
- Sydney Morning Herald
From Queen of the Skies to scrap metal: The life and death of giant planes
At 19, the world's oldest commercial A380 is hardly ancient but – in aircraft years – it's reached an age at which most large jets (the affectionate nickname for all wide, long bodied aircraft) retire to the great boneyards of the desert. Not this one though: after a five-year hiatus, it's back ploughing the skies for Emirates, according to The European Union Aviation Safety Agency (EASA) says that most planes have a life cycle of about 25-30 years, but that includes a long period of research and development before their first commercial flights take off. If you find yourself on a comparatively ancient aircraft, don't worry: planes are subjected to frequent tests to ensure safety and usually retire because they become less commercially competitive rather than dangerous. The birth of a giant aircraft A wide-body aeroplane's journey involves a long period of incubation and subsequent nurturing before it can go out into the world. 'The journey from the design board to commercial service for a commercial aircraft is one of the most complex undertakings in modern industrial engineering,' says Linus Benjamin Bauer, founder and managing direction of the aviation consultancy BAA & Partners. 'Typically, the aircraft development programme takes up to 15 years to bring a new aircraft such as the A380 to market.' The original jumbo, Boeing's 747, was conceived in 1966 and began to fly commercially four years later thanks to tight deadlines imposed by its first purchaser, Pan Am. But, before paying passengers can get onboard, planes face 'initial conceptual studies, customer consultations, digital modelling, prototype development and regulatory certification,' according to Bauer. 'Certification itself is particularly rigorous,' he says. 'Manufacturers must demonstrate compliance with thousands of airworthiness requirements. Each new aircraft must pass a full-scale evacuation test – where all passengers must exit within 90 seconds using only half the available exits. Structural integrity is validated through static testing, where airframes are pushed 50 per cent beyond their design limits, and fatigue testing, which simulates decades of flight cycles.' These tests can make or break a plane's popularity: when they uncovered issues with weight in some of Boeing's earliest 787 aircraft (nicknamed the 'Terrible Teens'), the planes were rejected by airlines including All Nippon Airways and Royal Air Maroc, according to the website (though they now take to the skies with Ethiopian and Air Austral).
Yahoo
29-05-2025
- Business
- Yahoo
The complex life cycle of giant aircraft – and why you might be better off in an older model
At 19, the world's oldest commercial A380 is hardly ancient but – in aircraft years – it's reached an age at which most large jets (the affectionate nickname for all wide, long bodied aircraft) retire to the great boneyards of the desert. Not this one though: after a five-year hiatus, it's back ploughing the skies for Emirates, according to The European Union Aviation Safety Agency (EASA) says that most planes have a life cycle of around 25-30 years, but that includes a long period of research and development before their first commercial flights take off. If you find yourself on a comparatively ancient aircraft, don't worry: planes are subjected to frequent tests to ensure safety and usually retire because they become less commercially competitive rather than dangerous. A wide-body aircraft's journey involves a long period of incubation and subsequent nurturing before it can go out into the world. 'The journey from the design board to commercial service for a commercial aircraft is one of the most complex undertakings in modern industrial engineering,' says Linus Benjamin Bauer, founder and managing direction of the aviation consultancy BAA & Partners. 'Typically, the aircraft development programme takes up to 15 years to bring a new aircraft such as the A380 to market.' The original jumbo, Boeing's 747, was conceived in 1966 and began to fly commercially four years later thanks to tight deadlines imposed by its first purchaser, Pan Am. But, before paying passengers can get onboard, planes face 'initial conceptual studies, customer consultations, digital modelling, prototype development and regulatory certification,' according to Bauer. 'Certification itself is particularly rigorous,' he says. 'Manufacturers must demonstrate compliance with thousands of airworthiness requirements. Each new aircraft must pass a full-scale evacuation test – where all passengers must exit within 90 seconds using only half the available exits. Structural integrity is validated through static testing, where airframes are pushed 50 per cent beyond their design limits, and fatigue testing, which simulates decades of flight cycles.' These tests can make or break a plane's popularity: when they uncovered issues with weight in some of Boeing's earliest 787 aircraft (nicknamed the 'Terrible Teens'), the planes were rejected by airlines including All Nippon Airways and Royal Air Maroc, according to the website (though they now take to the skies with Ethiopian and Air Austral). The A380 also had a complicated conception. 'While technologically advanced, it was delayed by nearly two years due to a major production issue,' says Bauer. 'The wiring systems designed in Germany were incompatible with the French-built fuselage sections because they used different 3D modelling software versions. This misalignment triggered an expensive and [potentially] reputationally damaging cascade of redesigns.' Running costs affect the lifespan of an aircraft, as well as advancing technology and trends. The A380 is a hulk of a plane and its days have long been numbered, thanks to expenses linked to its size. In 2021, Emirates, the biggest fan of the aircraft with 121 in its fleet, took delivery of the last one ever made. It meant that the A380 had a much shorter run than the 747, which only went out of production in 2022, after more than five decades. Born out of a desire to fit more passengers into the cabin and raise per-seat profits, the 747 has been a huge success, with no competitors to match it in terms of seat capacity until the A380 came along 37 years later. Both aircraft continue to fly, with Forbes claiming there are 400 747s still in service (almost double the amount of A380s ever made). Keeping older planes going requires meticulous maintenance and careful piloting. New tech is retro-fitted and they often have makeovers to bring their cabins or liveries up to date too: in May 2025, Korean Air unveiled a 747-8i sporting its smart new blue look and logo. 'Over the course of a jet's life, it will undergo extensive maintenance and repair, but these do not imply degradation in safety,' says Bauer. 'On the contrary, aircraft become more stringently monitored as they age. Airlines conduct daily line checks, periodic A- and B-checks, and deep-dive C- and D-checks where the aircraft is virtually dismantled, inspected, and rebuilt every six to ten years. Engines are overhauled or replaced, flight control systems updated, and any structural fatigue is carefully monitored using non-destructive testing techniques. Safety margins remain extremely high, and ageing aircraft are continuously evaluated under regulatory oversight from authorities such as the Federal Aviation Authority and EASA.' But the shadow of retirement always lingers, because aircraft manufacturers are endlessly innovating to make their products lighter and more sustainable. It's been impossible to fly from the UK in a 747 since 2020, when both BA and Virgin Atlantic retired theirs (hop to Frankfurt, however, and you can board a Lufthansa 747-8 to one of 12 destinations, including Tokyo Haneda, Buenos Aires and Newark). President Trump also travels on the two, heavily customised 747s in the Air Force One fleet, and was recently gifted another one by the Qatari government. It will, however, require a bit of retrofitting if it is to serve in the fleet. 'The President and his travel companions enjoy 4,000 square feet of floor space on three levels, including an extensive suite for the President that features a large office, lavatory, and conference room. Air Force One includes a medical suite that can function as an operating room, and a doctor is permanently on board,' the White House website reveals. For normal passengers, A380s remain attractive: roomy, with a smooth ride, they're renowned for being comfortable on long-haul journeys while their First Class and Business cabins have space for plenty of onboard luxuries. There are even proper showers on some Emirates' A380s – which goes some way to explain the reluctance to decommission them by some airlines, despite 787s and A350s being more economical. In 2024, IATA revealed that the average age of a commercial aircraft was 14 years and 10 months, and the EASA states that almost a third of all of Europe's planes are due to be retired in the next decade. The lucky ones will live out their days in aerospace museums such as Paris's Musée de l'Air et de l'Espace in Paris Le Bourget. Others are dismantled so that approved working parts can be reused, and some cabin furniture finds its way into films and TV shows, offices and even homes. Much of what can't be reused, including titanium, aluminium and rubber, can be recycled, though about 15 per cent of waste ends up in landfill, according to the EASA. Among the retirees, there are bound to be more A380s and 747s because, in 2026, another giant is expected on the scene: the 777-9. Longer even than the 747-8, with the largest engines of any passenger plane, it should still cut fuel consumption by 10 per cent and has been ordered by British Airways, Singapore Airlines, Emirates and Lufthansa amongst others. 'The aircraft features new carbon-fibre composite wings, advanced GE9X engines, and a reimagined passenger cabin,' says Bauer. 'From my point of view, the 777X will effectively mark the end of the 747 in passenger service. While some 747-8is may remain in limited use, and freighter versions will continue for years due to their payload advantages, the age of four-engine passenger aircraft is over. It is not sentiment but economics – as well as evolving regulation on noise, emissions, and sustainability – that has redrawn the map. In this new landscape, efficiency, not size, is king.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
