Latest news with #airlineclosure
CNA
11 hours ago
- Business
- CNA
Jetstar Asia closure ‘disappointing' but airline has offered strong support, staff say
SINGAPORE: The closure of low-cost airline Jetstar Asia has come as a shock to employees who did not expect such an "extreme" measure. But staff interviewed by CNA late on Thursday (Jun 12) praised the company for the support extended thus far, from severance packages to help with finding new jobs. More than 500 people will be laid off as a result of the airline ceasing operations on Jul 31. Jetstar Asia staff said they were first informed through a company-wide email at about 7am on Wednesday, slightly ahead of the public announcement. A pilot who has been with Jetstar Asia for under a year said "it was quite sudden' and "there was no real clue" that something like this would happen. 'We did hear that the company wasn't making much money per se, but at most we expected no increment or no bonuses, which we would've just sucked it up and lived with it,' said the pilot, who declined to be named. A cabin crew member who has worked for the airline for about three years said the news was "sad and disappointing'. 'I had a flight soon after the news broke. I had a bit of mixed feelings, but as cabin crew, we have to stay professional,' he added. He said his colleagues have become like family. "The management did call us up individually and asked us how we are coping and are we okay, because we still have to work,' he said. The flight attendant, who also did not want to be identified, said a company townhall was held soon after the official announcement. It was a physical meeting at Changi Airport Terminal 1, with the option to attend virtually. During the session, management talked about the company's challenges from operating expenses to fuel prices. The head of its parent company Qantas Group had said that the low-cost carrier was facing rising supplier costs, high fees at airports and rising competition in the region. "THEY HANDLED IT QUITE WELL" Staff will receive four weeks' salary for every year they have worked for Jetstar, along with a bonus for the current financial year. There will also be a special thank-you payment and continued access to staff travel benefits for a period equivalent to their tenure. 'The severance package is attractive,' the pilot told CNA. 'In fact it is quite good, especially for the guys who have been in the company longer.' Jetstar is also helping employees find jobs elsewhere in the aviation sector. 'For pilots, they have helped link us up with the HR (human resources) of other airlines to get us to go over, or have them come over, to give us a talk about their openings,' he added. The air steward similarly said: 'They are providing us other avenues, and most of us are likely going to the other companies. 'They handled it quite well, they tried to give us other opportunities," he added. "Not just the other Jetstar arms, but they also gave us channels to other airlines.' These include Singapore Airlines, Emirates and Qatar Airways, apart from Jetstar Airways and Jetstar Japan, according to staff members. Labour chief Ng Chee Meng had earlier said that the National Trades Union Congress (NTUC), together with the Singapore Manual and Mercantile Workers' Union (SMMWU), was also working to help affected staff with job placement and career advisory support, particularly within the aviation and aerospace sectors. The NTUC and its Employment and Employability Institute (e2i) will be on-site at Changi Airport Terminal 1 from next week to offer the likes of career coaching, skills upgrading and employability assistance, he said. "We are exploring opportunities for Singapore Airlines Group, a unionised company, to match affected Jetstar Asia employees, including crew and corporate staff, to suitable roles where possible," said the NTUC secretary-general. "The NTUC Aerospace and Aviation Cluster will work with (the) Civil Aviation Authority of Singapore and Changi Airport Group to identify opportunities for the affected employees as well." The pilot told CNA that while Jetstar Asia will begin 'tapering down' in July ahead of its closure at the end of the month, it is currently maintaining its flight frequency as much as possible. 'The management said they are not going to disrupt the flight(s) .... and want to keep the flights going,' he said. 'They won't want to suddenly cancel this month as a lot of people will be affected, given it's the holiday period.'
Yahoo
a day ago
- Business
- Yahoo
YAHOO POLL: Did you manage to rebook your affected Jetstar Asia flight?
It's the end for 20-year-old airline as Jetstar Asia announced its closure early Wednesday (11 June) morning. The Singapore-based airline, operated by Qantas Group, explained that the decision was due to rising costs and competition. In a Facebook post, they wrote, "Jetstar Asia's (3K) business has been increasingly challenged in recent years by escalating supplier costs, airport fees and aviation charges as well as growing capacity and competition in the region. Despite our best efforts to offset these rising costs, they are expected to continue into the foreseeable future, putting unsustainable pressure on Jetstar Asia's ability to offer low fares." The sudden announcement of the closure of Jetstar Asia left some customers feeling confused and frustrated over the conflicting information, or lack thereof. A customer, by the name of Daniel, told CNA that he was informed via email that his flight to Bangkok was cancelled. The email even had his booking reference listed. Yet, his friend was told the flight was still proceeding as usual when they called the Jetstar Asia hotline. Other polls YAHOO POLL: Do you think getting Botox is safe? YAHOO POLL: Would you date someone shorter than you? YAHOO POLL: Have you completed Malaysia's VEP requirement? It was also reported that other customers had to rebook flights on other airlines and ended up having to pay more. There were also concerns that they longer they waited, the higher ticket prices would be as there'll be other displaced customers rebooking tickets. So, we want to hear from those who are affected – did you manage to make alternative arrangements for your cancelled Jetstar Asia flights? Related: Jetstar Asia to cease operations from July 31, over 500 employees in Singapore affected Jetstar Asia closure: Some customers confused, frustrated by poor communication Jetstar Asia closure: Affected staff get 4 weeks' salary for each year of service
Independent Singapore
2 days ago
- Business
- Independent Singapore
Qantas to shut down Singapore-based Jetstar Asia; over 500 jobs affected
SINGAPORE: The Qantas Group announced on Wednesday (June 11) that it will be closing its Singapore-based low-cost subsidiary, Jetstar Asia, due to financial reasons. Reports say that more than 500 employees will be affected by the closure. Over the next seven weeks, the company will keep operating flights, albeit on a progressively reduced schedule. Jetstar Asia's final day of operation will be on July 31. Full refunds will be offered to customers with existing bookings on cancelled flights, with the company re-accommodating customers onto other airlines where possible. The company said in its announcement that Jetstar Asia has faced increasing challenges in the past few years, including higher supplier costs and airport fees, as well as increased regional competition, which 'fundamentally challenged the low-cost airline's ability to deliver returns comparable to the stronger performing core markets in the Group.' Calling the move a strategic restructure, the Quantas Group added that it will be enabled to recycle as much as $500 million in capital, which will go toward supporting its fleet renewal program. 'The airline is expected to post a $35 million underlying EBIT loss this financial year, prior to the closure decision,' the statement reads. Only the intra-Asia routes operated by Jetstar from its Singapore base will be affected by the move, and Jetstar Airways will continue to fly from Australia into Asia, including Singapore, Thailand, Indonesia, Vietnam, Japan, and South Korea. Qantas Group CEO Vanessa Hudson said: 'Jetstar Asia has been a pioneering force in the Asian aviation market for more than 20 years, making air travel accessible to millions of customers across Southeast Asia.' Jetstar Asia's affected workers The company added that its employees affected by the closure will be given employment support services and redundancy benefits. A spokesperson for the company was quoted by CNA as saying that the affected staff will be getting four weeks' salary for each year they were employed by Jetstar Asia. Additionally, they'll receive a special bonus payment for the financial year of 2025 and a special thank-you payment. Travel benefits for a period equivalent to their tenure will also be made available to them. 'Qantas is also actively working to find job opportunities across the Group and with other airlines in the region,' the company's statement read. The Qantas Group underlined the importance of Singapore as a critical hub, since Changi is its third-largest airport across the globe. 'We are incredibly proud of the Jetstar Asia team and the work they have done to deliver low fares, strong operational performance, and exceptional customer service. This is a very tough day for them. Despite their best efforts, we have seen some of Jetstar Asia's supplier costs increase by up to 200 per cent, which has materially changed its cost base,' said Qantas Group CEO Vanessa Hudson. 'I want to sincerely thank and acknowledge our incredible Jetstar Asia team, who should be very proud of the impact they have had on aviation in the region over the past two decades,' she added. /TISG Read also: Woman's luggage gets damaged 'beyond repair' on Jetstar flight See also Woman's luggage gets damaged 'beyond repair' on Jetstar flight
The Independent
2 days ago
- Business
- The Independent
Budget airline to close after 20 years
Budget airline Jetstar Asia is set to close this summer after over 20 years of operations. The Qantas Group announced a 'strategic restructure' today (11 June), including the closure of the Singapore-based low-cost airline. Jetstar Asia will reduce its flight schedule across the next seven weeks before operations cease on 31 July. The airline, founded in 2003, was expected to make a AU$35 million loss this financial year. According to the group, the closure of the intra-Asia airline will enable the Qantas Group to invest $500 million in renewing its aircraft fleet. Up to 13 Jetstar Asia Airbus A320 aircraft will also be redeployed for routes across Australia and New Zealand. The closure will impact 16 routes across Asia, including flights connecting Singapore with destinations in Malaysia and the Philippines. Affected customers will be offered full refunds or re-accommodated onto alternative airlines, said the group. Jetstar Airways and Jetstar Japan services in Asia and all of Jetstar Airways international services in and out of Australia will be unaffected by the closure. The Qantas Group blamed rising supplier costs, high airport fees and 'intensified competition in the region: for the closure of the low-cost airline. Employees will be provided with redundancy benefits following the announcement. Qantas Group CEO Vanessa Hudson said: 'Jetstar Asia has been a pioneering force in the Asian aviation market for more than 20 years, making air travel accessible to millions of customers across Southeast Asia.' 'We are incredibly proud of the Jetstar Asia team and the work they have done to deliver low fares, strong operational performance and exceptional customer service. This is a very tough day for them. Despite their best efforts, we have seen some of Jetstar Asia's supplier costs increase by up to 200 per cent, which has materially changed its cost base.' 'I want to sincerely thank and acknowledge our incredible Jetstar Asia team, who should be very proud of the impact they have had on aviation in the region over the past two decades.'
Yahoo
2 days ago
- Business
- Yahoo
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 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 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. The budget carrier is 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. Qantas chief Vanessa Hudson said some supplier costs have risen by up to 200 per cent. Jetstar Asia 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 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. Changi Airport Group (CAG) said it is disappointed by Jetstar Asia's decision to exit the Singapore market, 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. Jetstar Asia operates about 180 weekly services at the airport, and carried about 2.3 million passengers in 2024, accounting for about 3 per cent of Changi's total traffic. 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. The Qantas Group will provide support for Jetstar Asia to continue to meet its 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 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. E-mail us at stnewsdesk@ Source: The Straits Times © SPH Media Limited. Permission required for reproduction Discover how to enjoy other premium articles here
