End of an Era: Jetstar Asia to Cease Operations Amid Rising Costs
Qantas Airways will close its 20-year-old Singapore-based Jetstar Asia budget airline due to rising costs, high fees, and competition, resulting in up to 500 job losses. The fleet will be redeployed to Australia and New Zealand. The closure aims to recycle up to A$500 million into core businesses.
In a decisive move, Qantas Airways has announced the closure of its Singapore-based budget airline, Jetstar Asia, effective next month. The shutdown is attributed to escalating supplier costs, significant airport fees, and fierce regional competition, which have made it challenging for the airline to achieve profitability.
The imminent closure will result in up to 500 employees losing their jobs, as Qantas plans to reallocate the airline's fleet of 13 Airbus A320 planes to bolster operations in Australia and New Zealand. This strategic decision aligns with Qantas's focus on its more profitable core markets.
Despite Jetstar Asia's contributions over two decades, rising operational costs at Singapore's Changi Airport have necessitated this change. Efforts are underway to support affected employees in finding new opportunities within the Qantas group or external airlines, ensuring a smooth transition.
(With inputs from agencies.)
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