Qantas to Wind Down Jetstar Asia Amid Rising Costs and Intense Rivalry
Qantas Airways has announced the closure of its Singapore-based budget carrier Jetstar Asia, citing increased supplier costs, high airport fees, and fierce competition. The shutdown will result in approximately 500 job losses, with the fleet being redirected to Australia and New Zealand for redeployment.
In a significant move, Qantas Airways has decided to shut down Jetstar Asia, its Singapore-based budget carrier, attributing the decision to escalating supplier costs, surging airport charges, and formidable regional competition.
The closure, set for next month, will see the redeployment of Jetstar Asia's fleet to Australia and New Zealand, however, this will lead to the loss of up to 500 jobs. Jetstar Asia had been operating 16 intra-Asia routes from Changi Airport in Singapore.
The airline has faced several challenges, including increased operational costs and intense competition from rival budget carriers such as Singapore Airlines' Scoot and AirAsia. Despite posting profits in only six out of its 20 years, the airline was expected to bear an underlying loss of A$35 million this financial year.
(With inputs from agencies.)
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