Will your flight be affected? This airline in Singapore is shutting down and laying off 500 staff
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&w=752&h=564&format=webp&quality=medium "Will your flight be affected? This airline in Singapore is shutting down and laying off 500 staff")
Australian airline Qantas to shut down Jetstar Asia Photograph: (others)
The operations will taper down in the next seven weeks, according to the Qantas announcement.
Australian airline Qantas said on Wednesday (June 11) it would shut down Jetstar Asia, its Singapore-based budget carrier, by the end of July. After 20 years of operation, the discount airline has been facing supply cost rises, airport fee woes and stiff competition from rivals like AirAsia and Scoot. More than 500 employees will be laid off.
The operations will gradually be phased down in the next seven weeks, according to the Qantas announcement.
What will happen to engers who have already booked Jetstar Asia flights?
Announcing the closure, Qantas said engers who had already booked Jetstar Asia flights would be fully refunded.
The airline will notify engers if their flights are impacted, and will those with tickets beyond 31 July.
Some of the engers might be given seats on other flights of the Qantas group.
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Those who booked using travel agents, or via other airlines, were told to them directly.
What will happen to Jetstar employees?
According to reports, the staff will be given redundancy benefits.
"Our focus is on ing them through this process and helping them to find new roles in the industry," said Jetstar Group chief executive Stephanie Tully.
The reason for closing Jetstar Asia
Qantas Group Chief Executive Vanessa Hudson said in a statement that Jetstar Asia's supplier cost rose by up 200 per cent. In this financial year, it had losses of around 35 million Australian dollars.
Quantas, the national airline of Australia, will save some $326 million by shutting down Jetstar Asia, which it can use for renewing its own aircraft fleet.
Some 13 planes freed up by the closure will be used in Australia-New Zealand routes.
How big is the impact of Jetstar Asia shutting down?
The mainly Asian airline had some 16 routes that could be hit by the closure.
These routes were between Singapore and Malaysia, the Philippines and Indonesia.
Qantas will continue to operate flights in Asia under its Jetstar Airways arm, to countries like Thailand, Indonesia and Japan.
The story of Jetstar Asia
Jetstar Asia was launched in 2004 and was in operation for more than 20 years.
It was known for popularising budget air travel.
Customers reacting to its shuttering described the airline as warm and efficient.
