Australia’s Qantas said on Wednesday (Jun 11) it will close Jetstar Asia, the group’s Singapore-based budget airline, as it reels with rising supplier costs, higher airport fees and intensifying competition among low-cost carriers.
The airline will cease operations on Jul 31 and will continue flights for the next seven weeks.
It added that Jetstar Asia customers with existing bookings on cancelled flights will be offered full refunds, and that the Qantas Group will look to reaccommodate customers onto other airlines where possible.
A Jetstar Asia spokesperson told CNA that more than 500 people will be laid off as a result of the airline’s closure.
Employees will also be provided redundancy benefits as well as employment support services, while Qantas works to find job opportunities across the group and with other airlines in the region, Qantas said.
The Singapore Manual and Mercantile Workers’ Union (SMMWU) said it is working closely with Jetstar Asia’s management to negotiate for retrenched workers to receive fair compensation.
Jetstar Asia has been unionised with National Trades Union Congress (NTUC) affiliate SMMWU since 2009.
“SMMWU remains dedicated to supporting members and workers through this difficult transition by providing job placement assistance and career advisory services across various industries, and financial aid, where necessary,” said the union’s secretary-general Andy Lim.
The union added that it will assist affected workers with job placement and career advisory services within the aviation and aerospace industry.
16 ROUTES AFFECTED
Qantas said that 16 intra-Asia routes will be affected by the closure of Jetstar Asia.
The airline currently operates flights between Singapore and destinations in Malaysia, Indonesia, Thailand, the Philippines, China, Sri Lanka, Japan and Australia.
Jetstar Airways’ domestic and international operations in Australia and New Zealand and Jetstar Japan will not be affected by the move.
Qantas added that 13 Jetstar Asia Airbus A320 aircraft will be progressively redirected to Australia and New Zealand.
