Qantas intends to shut down Jetstar Asia, a budget airline subsidiary of its network.
Breaking News: Qantas Airline's Big Move
10 June, 2025
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Qantas Group's Decision to Shut Down its Singapore-Based Subsidiary, Jetstar Asia
Hello Fellas! Let's dive into the latest happenings in the aviation world. Qantas, the iconic Australian airline group, has made a bold move to shutter its Singapore-based low-cost subsidiary, Jetstar Asia.
Here's why this ain't no walk in the park:
What's the Fuss?
Jetstar Asia, with its stellar reputation for customer service and operational reliability, has been battling steep increases in supplier costs, rising airport charges, and intensified competition across the region. The challenges have been relentless, making it near impossible to deliver returns comparable to Qantas' core markets.
Pocket Punch
The struggling airline is expected to report a hefty $35 million underlying EBIT loss in the current financial year. Ouch! Worse, the decision's likely to cost the Qantas Group a significant one-off hit of around A$175 million over two financial years.
A Faint Hope Remains for Asian Travelers
Fret not, mates! Jetstar Asia's closure only impacts its intra-Asia flights. Jetstar Airways will continue to operate into Asia from Australia, serving key destinations such as Singapore, Thailand, Indonesia, Vietnam, Japan, and South Korea. Phew!
Moving Forward
The decision to close Jetstar Asia will allow Qantas to recycle up to A$500 million in fleet capital, reinvesting it into higher-performing industries. The group will be saying goodbye to 13 Airbus A320 aircraft from Jetstar Asia, which will soon be redeployed to Australia and New Zealand.
A Bittersweet Farewell
Qantas Group CEO, Vanessa Hudson, expressed heartfelt gratitude to the hardworking Jetstar Asia team. Hudson acknowledged their contributions to the aviation industry in Southeast Asia over the past two decades. Customers with cancelled flights can bid farewell to their bookings with full refunds or be rerouted on other carriers where possible.
What Now?
The Qantas Group will be battling one-off redundancy and restructuring costs, as it works tirelessly to reaccommodate passengers and support the impacted employees. Ain't that a bummer?
But hey, chin up! Qantas remains committed to maintaining its critical international hub in Singapore, with access to nearly 20 codeshare and interline airline partners serving broader Asia. Stick around for more updates on this riveting story! 😎
Enrichment Insights:
- Over the past two decades, Jetstar Asia has been a pioneering force in Southeast Asia's aviation market.
- The closure affects 16 intra-Asia routes operated by Jetstar Asia, including flights connecting Singapore with destinations in Malaysia and the Philippines.
- Up to 13 aircraft from Jetstar Asia will be redeployed to Australia and New Zealand, creating more local jobs and offering more affordable fares in these regions.
- The closure is a response to rising supplier costs, high airport fees, and intensified competition in the region, which have hindered Jetstar Asia's profitability.
- Customers with cancelled flights will be offered full refunds or rerouted on alternative airlines.
- Affected employees will receive redundancy benefits upon closure.
Airline news has shown Qantas Group's decision to shut down Jetstar Asia affecting its intra-Asia flights as a response to rising costs and competition, leaving travelers to adapt to the changes in the region, as Qantas reinvests in higher-performing industries and redeploys 13 aircraft to Australia and New Zealand.
Despite Jetstar Asia's closure, Jetstar Airways will continue to serve key Asian destinations from Australia, providing some hope for travelers in the region.
