Jetstar Asia to cease operations by July 31
Australian airline Qantas said Wednesday it will close its loss-making budget carrier Jetstar Asia, axing 500 Singapore-based jobs.
The low-cost subsidiary will cease operations on July 31 as part of a "strategic restructure," Qantas group chief executive Vanessa Hudson said.
Qantas is "incredibly proud" of the Jetstar Asia team, Hudson said in a statement.
"This is a very tough day for them. Despite their best efforts, we have seen some of Jetstar Asia's supplier costs increase by up to 200 percent, which has materially changed its cost base."
Passengers with canceled flights on the Singapore-based regional carrier—which flies to 16 Asian destinations—will be offered refunds, Qantas said.
Jetstar Asia was expected to make an underlying loss of Aus$35 million (P1.1 billion) this financial year prior to the closure decision, according to Qantas, which owns 49 percent of the carrier.
The Asian regional carrier's 500 staff will be laid off and receive redundancy benefits as well as help finding new jobs, the Australian group said.
Jetstar Asia's 13 A320 aircraft will be progressively redeployed to Australia and New Zealand, Qantas said, creating more than 100 local jobs.
Shutting the carrier would deliver up to Aus$500 million (US$326 million) for Qantas to support the group's fleet renewal program, it said.
Qantas said the decision to shutter Jetstar Asia was taken together with the offshoot's 51-percent shareholder, Westbrook Investments.
What to do if you have current bookings
Jetstar Asia is adjusting its flight schedule for trips booked before July 31. If your flight is affected, the airline will contact you directly. Otherwise, your flight will operate as planned.
For bookings from July 31 onwards, customers are eligible for a full refund to their original payment method. The airline will also reach out directly to discuss your options.
If you have a Jetstar Asia (3K) flight booked until July 31, you can visit Manage Booking to secure your refund now.
For those with an existing Jetstar voucher for Jetstar Asia (3K) travel, you'll be contacted in August to convert any remaining balance into a monetary refund.
Finally, Club Jetstar memberships will begin processing refunds in August. These will be automatically credited back to the card used for the purchase.
