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Straits Times
2 days ago
- Business
- Straits Times
Jetstar Asia to cease operations from July 31, over 500 employees in Singapore affected
Jetstar Asia will continue to operate flights for the next seven weeks on a progressively reduced schedule, before its final day of operations on July 31. ST PHOTO: STEPHANIE YEOW Jetstar Asia to cease operations from July 31, over 500 employees in Singapore affected SINGAPORE - Singapore-based low-cost airline Jetstar Asia will cease operations on July 31 as part of a 'strategic restructure' by its parent company, Australian flag carrier Qantas. More than 500 employees in Singapore will be laid off due to the closure, with the airline assuring that it will offer a range of support, including retrenchment benefits and employment opportunities, either within the Qantas Group or elsewhere. Jetstar Asia said in a statement on June 11 that it will continue to operate flights out of Singapore for the next seven weeks with a progressively reduced schedule until its final day of operations on July 31. Qantas said 16 intra-Asia routes will be impacted by the closure of Jetstar Asia, with no changes to Jetstar Airways (JQ) and Jetstar Japan (GK) services into Asia. Jetstar Airways' international services in and out of Australia will also remain unchanged. Jetstar Asia flies to major hubs in South-east Asia such as Bangkok, Manila, Jakarta and Kuala Lumpur, as well as other places like Bali, Surabaya and Colombo in Sri Lanka. The airline operates about 180 weekly services at Changi Airport and carried about 2.3 million passengers in 2024, accounting for about 3 per cent of the airport's total traffic. Customers with bookings that are impacted by the announcement will be contacted directly, with the option of a full cash refund or an alternative flight where possible . The budget carrier, which operates out of Changi Airport Terminal 4, has set up a dedicated webpage with information for its customers, and its Travel Alert page will be regularly updated with the latest advice. Jetstar Asia said the decision to cease operations comes amid escalating supplier costs, airport fees and aviation charges in recent years, as well as growing capacity and competition in the region. Qantas chief Vanessa Hudson said some supplier costs have risen by up to 200 per cent. Jetstar Asia was expected to post a loss of A$35 million (S$29.3 million) before interest and taxes this financial year, prior to the decision to shut down. It has been bleeding cash for several years now, according to Accounting and Corporate Regulatory Authority records. The airline lost S$165.4 million in the financial year ending June 30, 2021, and S$37.2 million in the following financial year, during the Covid-19 pandemic. It managed to turn a S$12.5 million profit in 2023, but slipped back into the red with a S$7.1 million loss in the 12 months ending in June 2024. On June 11, Jetstar Asia said it foresees costs continuing to rise in future, putting 'unsustainable pressure' on the airline's ability to offer low fares, which it said is fundamental to its business model. Jetstar Asia chief executive John Simeone said: 'Unfortunately, despite our best efforts, the market conditions have ultimately impacted our ability to continue to offer the everyday low fares that are our DNA.' The Singapore Manual & Mercantile Workers' Union (SMMWU) said it has worked closely with Jetstar Asia's management to ensure affected workers receive fair compensation. SMMWU secretary-general Andy Lim said the union will support employees by providing job placement assistance and career advisory services across various industries, and financial aid, where necessary. Retrenched employees will receive a redundancy payment of four weeks per year of service, a bonus for this financial year, a special 'thank you' payment as well as other benefits. Changi Airport Group (CAG) said it is disappointed by Jetstar Asia's decision to exit the Singapore market after 20 years of operations here , but respects the carrier's commercial considerations. 'Our immediate priority is to ensure passengers are well-supported and to minimise disruption during the transition period,' the airport operator said in a statement. Of the 16 routes affected by Jetstar Asia's closure, 12 are served by 18 other airlines offering more than 1,000 weekly services, CAG said. 'We will monitor the routes affected by Jetstar Asia's exit, and where additional capacity is needed, we will actively engage other airlines to fill the gap,' it added. CAG will also work to restore connectivity to the four destinations served exclusively by the budget carrier from Changi. They are Broome in Australia, Labuan Bajo in Indonesia, Okinawa in Japan and Wuxi in China. 'CAG values its partnership with the Qantas Group and will continue to collaborate with Qantas and Jetstar Airways to support their growth and presence at Changi Airport,' it added. Ground handler Sats said it is working closely with Jetstar Asia to ensure a smooth and orderly transition. The Qantas Group said it will provide support for Jetstar Asia to continue to meet its financial obligations while operations wind down. 'Jetstar Asia has been part of the Jetstar family for more than 20 years and this is an incredibly difficult and sad day for our people, our customers and the entire Jetstar Group,' said Jetstar Group chief executive Stephanie Tully. Following the airline's closure, its 13 Airbus A320 aircraft will be progressively redeployed across the Qantas Group to support fleet renewal and growth in the Australia and New Zealand businesses in line with underlying demand. Tell us if you are affected. 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Straits Times
2 days ago
- Business
- Straits Times
Over 500 employees to be retrenched in Jetstar Asia's closure
Jetstar Asia said it will support the workers with retrenchment packages and employment support. ST PHOTO: STEPHANIE YEOW Over 500 employees to be retrenched in Jetstar Asia's closure SINGAPORE – Over 500 employees from Jetstar Asia will be retrenched following the closure of the Singapore-based low-cost airline on July 31. In a statement on June 11, Jetstar Asia said it will support them with retrenchment packages, employment support, or provide them with other opportunities within the Qantas group or with other airlines and aviation companies in Singapore. The airline's closure is part of a 'strategic restructure' by its parent company, Australian flag carrier Qantas. In a separate statement, the Singapore Manual & Mercantile Workers' Union (SMMWU) said it has worked closely with management and negotiated with the company to ensure that affected members and workers receive fair compensation. SMMWU is affiliated with the National Trades Union Congress (NTUC). Jetstar Asia has been unionised since 2009. The company has committed to providing a comprehensive retrenchment package in line with the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment, SMMWU added. SMMWU said it remains dedicated to supporting members and workers by providing job placement assistance and career advisory services across various industries, and financial aid, where necessary. It said: 'The union would leverage the Labour Movement network, including the NTUC Aviation and Aerospace (A&A) cluster of unions, to assist affected members and workers with job placement and career advisory services within the A&A industry.' Affected Singaporeans and permanent residents can tap NTUC's Employment and Employability Institute for job matching services, career coaching and skills upgrading advisory, it added. An inter-agency task force on retrenchment said in a separate statement that it is working closely with Jetstar and the SMMWU to support the affected workers. Called the Taskforce for Responsible Retrenchment and Employment Facilitation, it comprises the Ministry of Manpower, Workforce Singapore, the NTUC and the NTUC's Employment and Employability Institute. 'Our priority is to help the affected employees with employment facilitation, said the taskforce in a statement. Join ST's WhatsApp Channel and get the latest news and must-reads.
Straits Times
2 days ago
- Business
- Straits Times
Jetstar Asia to cease operations from July 31, over 500 employees affected
Jetstar Asia will continue to operate flights for the next seven weeks on a progressively reduced schedule, before its final day of operations on July 31. ST PHOTO: STEPHANIE YEOW SINGAPORE - Jetstar Asia will cease operations from July 31 as part of its 'strategic restructure', said the Singapore-based airline in a statement on June 11. Over 500 employees will be affected by the closure, with the airline assuring that it will offer a range of support, including retrenchment benefits and employment opportunities. Jetstar Asia said it will continue to operate flights for the next seven weeks with a progressively reduced schedule across its short haul international network out of Singapore, before its final day of operations on July 31, 2025. Its parent company, Qantas Group, said only 16 intra-Asia routes will be impacted by the closure of Jetstar Asia, with no changes to Jetstar Airways (JQ) and Jetstar Japan (GK) services into Asia. 'All of Jetstar Airways international services in and out of Australia remain unchanged,' Qantas said in a statement. The airline said customers with bookings impacted by the announcement will be contacted directly with the option of a full cash refund or an alternative flight where possible. 'For customers with bookings prior to July 31, 2025, there will be some changes to Jetstar Asia's usual schedule, and we will reach out directly to impacted customers with alternative flights or a full refund,' it said. 'For customers with bookings after closure, we will provide a full refund.' The carrier has set up a dedicated webpage with information for its customers and its Travel Alert will be regularly updated with the latest advice. Jetstar Asia said the decision to cease operations comes after a review, which has, in recent years, been challenged by escalating supplier costs, airport fees and aviation charges as well as growing capacity and competition in the region. The budget airline foresees the rising costs to continue in the future, putting 'unsustainable pressure' on the airline's ability to offer low fares, which it said is fundamental to its business model. 'Jetstar Asia has been part of the Jetstar family for more than 20 years and this is an incredibly difficult and sad day for our people, our customers and the entire Jetstar Group,' said Jetstar Group CEO Stephanie Tully. Jetstar Asia CEO John Simeone said: 'Unfortunately, despite our best efforts, the market conditions have ultimately impacted our ability to continue to offer the everyday low fares that are our DNA.' The Qantas Group will provide support for Jetstar Asia to continue to meet its obligations while operations wind down towards closure. Besides retrenchment benefits, Jetstar Asia said affected employees will be offered employment opportunities where possible across the Qantas Group, and with other airlines and aviation partners in Singapore. The Singapore Manual & Mercantile Workers' Union (SMMWU) said it has worked closely with Jetstar Asia's management to ensure affected workers receive fair compensation. SMMWU secretary-general Andy Lim said the union will support employees by providing job placement assistance and career advisory services across various industries, and financial aid, where necessary. Following its closure, Jetstar Asia's 13 aircraft will be progressively redeployed across the Qantas Group to support fleet renewal and growth in the Australia and New Zealand businesses in line with underlying demand. Join ST's WhatsApp Channel and get the latest news and must-reads.
Straits Times
2 days ago
- Business
- Straits Times
Jetstar Asia to cease operations from July 31
Jetstar Asia will continue to operate flights for the next seven weeks on a progressively reduced schedule, before its final day of operations on July 31. ST PHOTO: STEPHANIE YEOW SINGAPORE - Jetstar Asia will cease operations from July 31 as part of its 'strategic restructure', said its parent company Qantas Group in a statement on June 11. It said only 16 intra-Asia routes will be impacted by the closure of Jetstar Asia with no changes to Jetstar Airways and Jetstar Japan services into Asia. 'All of Jetstar Airways international services in and out of Australia remain unchanged,' it said. The statement said Jetstar Asia will continue to operate flights for the next seven weeks on a progressively reduced schedule, before its final day of operation on July 31, 2025. Join ST's WhatsApp Channel and get the latest news and must-reads.
