Qantas will shut-down its Singapore-based subsidiary Jetstar Asia and redeploy the fleet to Australia and New Zealand.
Qantas Group CEO Vanessa Hudson said the Asian airline was expected to post a $35 million underlying loss this financial year, prior to the closure decision.
Ms Hudson said the low-cost subsidiary had faced growing challenges in recent years including rising supplier costs, high airport fees, and intensified competition in the region.
She said Jetstar Asia would continue to operate flights for the next seven weeks on a progressively reduced schedule, before its final day of operation on July 31.
“The closure of Jetstar Asia only impacts the intra-Asia routes operated by the airline from its base in Singapore.
“It does not impact Jetstar Airways’ domestic and international operations in Australia and New Zealand or Jetstar Japan.
Ms Hudson said Jetstar Airways would continue to fly from Australia into Asia, including to all its destinations across Singapore, Thailand, Indonesia, Vietnam, Japan and South Korea.
She said 13 Jetstar Asia Airbus A320 aircraft would be progressively redeployed to Australia and New Zealand.
“Only 16 intra-Asia routes will be impacted by the closure of Jetstar Asia with no changes to Jetstar Airways and Jetstar Japan services into Asia.
“All of Jetstar Airways international services in and out of Australia remain unchanged.”
Ms Hudson said the closure of Jetstar Asia would result in a number of redundancies.
