Qantas Airways plans to close its Singapore-based Jetstar Asia due to rising costs and intense competition in the region. The closure is expected to lead to up to 500 job losses, with Jetstar Asia having operated for 20 years and generating profits in only six of those years.
Jetstar Group CEO Stephanie Tully noted “really high cost increases” related to fuel, airport fees, and security which have affected operations.
Changi Airport, the world’s fourth-busiest airport, is increasing charges until 2030 to manage higher operating costs and improve facilities.
Employees facing job loss will receive redundancy benefits and support to find employment, as announced by Singapore’s National Trades Union Congress.
Changi Airport shared it was disappointed by Jetstar Asia’s decision to exit Singapore but respected its commercial considerations.
Stephanie Tully shared: “Jetstar Asia’s cost base was hit particularly hard in the last 18 months to two years. We think it has had an impact on the business.”
