Jetstar Asia to Shut Down Amid Rising Costs and Competition

Australia's national carrier, Qantas Airways, announced on Wednesday its decision to shut down Singapore-based budget airline Jetstar Asia. The move, attributed to escalating supplier costs, increased airport fees, and fierce regional competition, will see Jetstar Asia cease operations next month, impacting up to 500 employees.

Jetstar Asia, operating since 2003 with a fleet of 13 Airbus A320 aircraft on 16 routes from Changi Airport, struggled with profitability challenges, reporting profits only six times over two decades. The closure follows significant cost pressures in Singapore, including substantial rises in fuel and airport charges.

The closure will release approximately A$500 million, enabling Qantas to consolidate its efforts and enhance profitability in core markets. Alongside redeployment of aircraft, employees will receive redundancy benefits, with efforts underway to assist in finding new roles within the Qantas group or other airlines.

(With inputs from agencies.)