Singapore (VNA) – Singapore-based low-cost airline Jetstar Asia will cease operations from July 31 as part of a “strategic restructure” by its parent company, Australian flag carrier Qantas.
In a statement on June 11, Jetstar Asia said 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. Its 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.
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.
According to the budget carrier, costs will continue to rise in the future, putting pressure on the airline's ability to offer low fares, which it said is fundamental to its business model.
More than 500 employees of Jetstar Asia 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.
Qantas Group will redeploy 13 Jetstar Asia aircraft to support fleet renewal and growth in Australia and New Zealand./.
