Australia’s Qantas mentioned on Wednesday (Jun 11) it should shut Jetstar Asia, the group’s Singapore-based finances airline, because it reels with rising provider prices, greater airport charges and intensifying competitors amongst low-cost carriers.
The airline will stop operations on Jul 31 and can proceed flights for the subsequent seven weeks.
It added that Jetstar Asia clients with current bookings on cancelled flights will likely be provided full refunds, and that the Qantas Group will look to reaccommodate clients onto different airways the place potential.
A Jetstar Asia spokesperson instructed CNA that greater than 500 individuals will likely be laid off on account of the airline’s closure.
Staff may even be offered redundancy advantages in addition to employment assist providers, whereas Qantas works to search out job alternatives throughout the group and with different airways within the area, Qantas mentioned.
16 ROUTES AFFECTED
Qantas mentioned that 16 intra-Asia routes will likely be affected by the closure of Jetstar Asia.
The airline at present operates flights between Singapore and locations in Malaysia, Indonesia, Thailand, the Philippines, China, Sri Lanka, Japan and Australia.
Jetstar Airways’ home and worldwide operations in Australia and New Zealand and Jetstar Japan is not going to be affected by the transfer.
Qantas added that 13 Jetstar Asia Airbus A320 plane will likely be progressively redirected to Australia and New Zealand.
