Budget airline Jetstar Asia closes after 20 years in the air

Budget Airline Jetstar Asia closes after 20 years in the air - Jetstar Asia will close in July, affecting 16 routes in and out of Singapore (image courtesy Justin Lim/Unsplash)

Jeststar Asia, the Singapore-based budget airline, will cease operations at the end of July.

In a shock announcement by part-owner Qantas, it was stated that the discount airline would close on July 31. The decision, made by Qantas, is due to rising supplier costs, increased regional competition and high airport fees. Passengers affected by the closure will receive full refunds. Jetstar Airways and Jetstar Japan flights are unaffected.

Jeststar Asia will gradually reduce its service over the next few weeks with travellers notified if their flight is affected. Passengers who have booked through a travel agent or separate airline are advised to contact those service providers directly.

Services affected include flights from Singapore to destinations in Malaysia, Indonesia and the Philippines. In total, 16 routes will be impacted. Thirteen Jetstar Asia Airbus A320 planes will be progressively redeployed to Australia nad New Zealand.

The low-cost carrier has been in cooperation for two decades but is set to make a A$35 million loss this year.

“We have seen supplier costs increase by up to 200%, which has materially changed its cost base,” said Qantas group chief executive Vanessa Hudson. "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 care."

Affected Jetstar Asia employees will receive redundancy benefits and employment support services. Qantas says it is actively working to redeploy staff across the Jeststar group and with other airlines in the region.

The airline has faced stiff competition from other low-cost airlines operating in the region, including AirAsia and Scoot.