Transport JetStar Asia to Cease Operations Amid Financial Struggles

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Photo courtesy of TTG Asia

 

JetStar Asia, a staple in the regional low-cost flight market, has announced the end of its operations just over a year after launching its Singapore to Krabi route. The decision, impacting more than 500 employees, comes amid surging supplier costs, high airport fees, and fierce industry competition. Affected passengers will receive full refunds.

 

Part of the Qantas Group, JetStar Asia has been significantly challenged by increased costs, with supplier prices reportedly soaring by up to 200%, severely affecting its financial stability. The airline is projected to incur a loss of 35 million Australian dollars (approximately 743.6 million baht) for the current financial year alone.

 

Vanessa Hudson, Chief Executive of Qantas Group, noted, "JetStar Asia has faced substantial financial challenges in recent years." Despite these hurdles, Jetstar Airways in Australia and Jetstar Japan will continue to operate unaffected.

 

Starting next month, JetStar Asia will progressively reduce its services, with full shutdown expected by end of July. Passengers with bookings beyond July 31 are being contacted directly for rebooking on alternate flights within the Qantas network. Those who booked through travel agents or third-party airlines are advised to seek assistance from those entities.

 

The airline's closure will affect 16 routes across Asia, disrupting services to key destinations in Malaysia, Indonesia, and the Philippines. However, Qantas plans to redirect 500 million Australian dollars towards fleet renewal and redeploy 13 planes to strengthen routes in Australia and New Zealand.

 

Since its inception in 2004, JetStar Asia has provided budget-friendly air travel in Asia. However, escalating competition from rivals like AirAsia and Scoot has compounded its financial woes. Many loyal customers expressed sentiments of sadness and nostalgia, with one stating, "Very saddened to hear this news about a very warm, efficient, wonderful airline."

 

Impacted employees will receive redundancy benefits, and Stephanie Tully, Chief Executive of Jetstar Group, has pledged support for team members to transition into new roles within the industry.

 

As JetStar Asia prepares for its final flights, Qantas reassures travellers that budget-friendly options will continue through Jetstar Airways, maintaining low-cost connectivity between Australia and Asia.

 

  Adapted by ASEAN Now from The Thaiger 2025-06-11