Just a little over a year after its new route from Singapore to Krabi took flight, the Singaporean airline JetStar Asia will cease services next month. Full refunds will be offered for affected passengers.
The airline, part of the Qantas Group, has struggled to cope with rising supplier costs, high airport fees, and fierce competition in the regional low-cost flight market. More than 500 employees are expected to lose their jobs as a result of the closure.
Despite the shutdown of Jetstar Asia, its sister companies, Jetstar Airways in Australia and Jetstar Japan, will continue operating, as Qantas confirmed that the closure will not affect these subsidiaries.
“Jetstar Asia has faced significant financial challenges in recent years,” said Vanessa Hudson, Chief Executive of Qantas Group.
“Supplier costs have increased by as much as 200%, which has severely impacted its cost base.”
The airline is projected to make a loss of 35 million Australian dollars (approximately 743.6 million baht) in this financial year alone.
Over the next seven weeks, Jetstar Asia will reduce its services progressively, notifying passengers whose flights are affected.
Passengers booked on flights after July 31 will be contacted directly and may be rebooked on alternative flights operated by the Qantas Group.
Customers who booked through travel agents or third-party airlines are advised to reach out to those providers for assistance.
The airline’s shutdown will disrupt 16 routes across Asia, including key destinations in Malaysia, Indonesia, and the Philippines.
Jetstar Asia’s closure will allow Qantas to redirect 500 million Australian dollars in resources towards renewing its fleet and redeploy 13 planes to bolster routes across Australia and New Zealand.
Jetstar Asia has been a staple in the region’s low-cost air travel market since 2004, but has faced increasing competition from rivals such as AirAsia and Scoot.
Many former customers have expressed their sadness over the announcement. One commenter on Jetstar Asia’s Facebook post stated, “Very saddened to hear this news about a very warm, efficient, wonderful airline.”
All employees impacted by the shutdown will receive redundancy benefits. Jetstar Group’s Chief Executive, Stephanie Tully, expressed her commitment to supporting the affected team members and helping them find new roles within the industry, reported BBC News.
While Jetstar Asia may be flying its last flights, Qantas’ Jetstar Airways will continue to serve low-cost routes between Australia and Asia, ensuring that budget-friendly options remain available for travellers in the region.
The story Jetstar Asia to ground flights by end of July amid rising costs as seen on Thaiger News.
