Qantas’ Jetstar Asia to shut down on Jul 31; over 500 staff to lose jobs
Singapore-based carrier’s 13 Airbus A320 aircraft will be redeployed to support fleet renewal at Qantas’ Aussie, Kiwi businesses
[SINGAPORE] Australian flag carrier Qantas will wind down the operations of its Singapore-based unit Jetstar Asia and shut it down on Jul 31, as rising costs threaten the sustainability of its business, said Jetstar Asia in a Wednesday (Jun 11) statement.
The move sees more than 500 employees retrenched. Jetstar Asia said that they will receive support during the closure, in the form of retrenchment packages, employment and employability support as well as opportunities within the Qantas Group, where possible, and other airlines and aviation partners in Singapore.
Changi Airport Group (CAG) expressed its disappointment with the carrier’s decision to exit Singapore, citing a longstanding partnership of 20 years. CAG said it respects the commercial considerations.
“Our immediate priority is to ensure passengers are well-supported and to minimise disruption during the transition period.”
Customers whose bookings have been impacted by the carrier’s exit will be contacted directly, and will be offered the option of a full cash refund or an alternative flight, where possible.
The budget airline will continue operating flights for the next seven weeks and progressively reduce its schedule across its short-haul international network outside of the Republic before its last day of operations, Jetstar Asia added.
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The closure will affect 16 intra-Asia routes and will not have an impact on Jetstar Group’s Australian and New Zealand unit, Jetstar Airways, or its Japan-based unit, Jetstar Japan. The two airlines will continue to operate their current schedules, including Jetstar Airways’ flights between Australia and Singapore.
The intra-Asia flights operated by Jetstar include:
- Singapore to Kuala Lumpur
- Singapore to Jakarta
- Singapore to Bangkok
- Singapore to Manila
Of the 16 destinations that Jetstar Asia serves, 12 are also served by 18 other airlines offering more than 1,000 weekly scheduled services, noted CAG.
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CAG said: “We will monitor the routes affected by Jetstar Asia’s exit, and where additional capacity is needed, we will actively engage other airlines to fill the gap.”
It added that it will also work with airline partners to restore connectivity on the four routes which are exclusively operated by Jetstar Asia – Broome (Australia), Labuan Bajo (Indonesia), Okinawa (Japan) and Wuxi (China).
Still, there is no denying that Jetstar Asia’s exit will be keenly felt by cost-conscious travellers. In 2024, the airline carried some 2.3 million passengers at Changi Airport, accounting for about 3 per cent of Changi’s total passenger traffic that year.
The move comes as Jetstar Asia deals with escalating supplier costs, airport fees and aviation charges alongside growing regional capacity and competition. Latest media reports said the carrier is expected to post an underlying earnings before interest and taxes loss of A$35 million (S$29.3 million) in the current financial year.
“These rising costs are projected to continue into the foreseeable future, putting unsustainable pressure on the airline’s ability to offer low fares, which is fundamental to its business model,” said Jetstar Asia.
The closure will free up A$500 million of capital for Qantas to reinvest in its fleet-renewal plans.
Once the airline’s operations have ceased, its 13 Airbus A320 aircraft will be redeployed across the Qantas Group to support fleet renewal and growth in its Australia and New Zealand businesses, in line with underlying demand, Jetstar Asia said.
Qantas Group will provide support for Jetstar Asia to continue to meet its obligations as operations wind down.
The Singapore Manual & Mercantile Workers’ Union (SMMWU) said it was notified of the job cuts and has negotiated with Jetstar Asia to “ensure that affected members and workers are treated with care and receive fair compensation”.
“The company has committed to providing a comprehensive retrenchment package in line with the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment,” it added in a statement.
SMMWU is working with the National Trades Union Congress (NTUC) to help affected workers find their footing, said NTUC secretary-general Ng Chee Meng.
The budget carrier sent a press release at 7.22 am to announce the news.
Just before that, some of its employees had been alerted via text on a crew activation system typically used to mobilise reserve staff. This was followed by e-mails about the retrenchment, and a virtual townhall on Microsoft Teams at 8.15 am.
“It was unexpected – all my managers were also in shock, and they didn’t see it coming,” said a cabin crew member, who declined to be named.
From next week, NTUC Singapore and NTUC’s Employment & Employability Institute, e2i, will be on site at Changi Airport Terminal 1 to provide affected workers with direct support, the labour chief said in a Wednesday Facebook post. This will include career coaching, skills upgrading and employability assistance.
“NTUC is also working with our partners to support these workers. We are exploring opportunities (with) Singapore Airlines – a unionised company – to match affected Jetstar Asia employees, including crew and corporate staff, to suitable roles where possible.”
NTUC’s Aerospace and Aviation Cluster will also work with the Civil Aviation Authority of Singapore and CAG to identify opportunities for affected workers, he added.
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