Qantas to shut down Jetstar Asia

Qantas Airways announced that it will close Jetstar Asia, its Singapore-based budget airline, effective July 31. The decision comes after two decades of operations and is driven by rising supplier costs, increased airport fees, and intensified competition from low-cost carriers in the region. The closure is expected to release up to A$500 million (approximately $325 million) for reinvestment into Qantas's core businesses, particularly to replace costly leased aircraft used by Jetstar Airways in Australia.

The shutdown will lead to the loss of over 500 jobs in Singapore, with affected employees receiving redundancy packages and assistance for job placement within Qantas and other airlines. Jetstar Asia currently operates 16 routes across Southeast and East Asia, utilizing a fleet of 13 Airbus A320 aircraft, all of which will be redeployed within Qantas Group operations in Australia and New Zealand.

The closure is projected to incur a one-time financial impact of around A$175 million, covering redundancy and restructuring costs. Despite this, Qantas anticipates that reallocating resources will strengthen its core operations and enhance long-term profitability. Industry analysts view the move as a strategic realignment, allowing Qantas to focus on more profitable markets, although it may reduce competition in the budget travel sector in Southeast Asia.

Singapore's Changi Airport expressed disappointment over the decision but acknowledged the commercial rationale behind it. For travelers with existing bookings on Jetstar Asia flights, Qantas is offering full refunds or alternative travel arrangements, and the airline will continue to operate flights until the closure date, with a progressively reduced schedule.