Jetstar Asia to Cease Operations by July 31

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For many Singaporeans, Jetstar Asia was more than an airline. It was a trusted escape, a weekend essential, and a familiar face in the skies.

Known for its budget-friendly fares and reliable service, Jetstar Asia quietly embedded itself into the routines and memories of countless travelers, especially those heading to nearby favorites like Thailand, the Philippines, and Japan.

TWO-DECADE JOURNEY COMES TO AN END

Jetstar Asia, the Singapore-based budget airline that has flown millions since its first in December 2004, has announced it will permanently cease operations on July 31, 2025. The announcement was made on June 11 through the airline’s social media channels, marking the end of a 21-year journey.

Image Credits: facebook.com/JetstarAsiaAirways

Founded as a joint venture with Qantas and Singapore’s Westbrook Investments, Jetstar Asia served 16 destinations across Asia and Australia with its fleet of Airbus A320 aircraft. It operated as an affordable link across borders, connecting Singapore with cities in Malaysia, Indonesia, China, Sri Lanka, Japan, and more.

THE IMPACT OF RISING OPERATIONAL COSTS

The airline cited rising operational costs, mounting competition, and regional overcapacity as reasons behind the difficult decision. In a statement, Jetstar Asia said:

“Despite our best efforts to offset these rising costs, they are expected to continue into the foreseeable future, putting unsustainable pressure on our ability to offer low fares.”

Jetstar Asia is projected to post an A$35 million (S$29 million) underlying EBIT loss this financial year, which is a clear signal that the financial strain had become too great to bear.

MORE THAN 500 EMPLOYEES AFFECTED

More than 500 employees will be affected by the shutdown. The airline has promised redundancy packages that include four weeks’ pay for every year of service, bonuses for the current financial year, and a “thank you” payment.

Jetstar Asia is also offering ongoing staff travel benefits for a period equal to each employee’s tenure, along with job placement support. Its parent group, Qantas, stated that it is actively working to find job opportunities across the group and with other airlines in the region.

WHAT PASSENGERS NEED TO KNOW

Customers booked on flights after July 31 will be offered full refunds or alternative arrangements where possible. Affected passengers can visit the airline’s “Manage Booking” portal to submit refund requests.

Jetstar Asia has also pledged to convert unused travel vouchers into monetary refunds. Then, Club Jetstar members will receive more information by August.

Flights will operate on a progressively reduced schedule until the final day of service.

MARKING AN END OF AN ERA

Jetstar Asia’s closure affects only its operations. Thus, Jetstar Airways (JQ) from Australia and Jetstar Japan (GK) will continue its flights. Routes between Australia and Asia, including Singapore, remain active under the broader Jetstar brand.

Image Credits: facebook.com/JetstarAsiaAirways

For frequent travelers and aviation enthusiasts, Jetstar Asia’s exit marks the end of an era. It was part of first solo trips, last-minute getaways, and long-awaited reunions. As its bright orange tailfin vanishes from Changi’s tarmac, it leaves behind not just empty gates but unforgettable memories.

Sources: 1 & 2

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Singapore airline industry’s recovery and challenges post-pandemic

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singapore-airlines-and-scoot-at-changi-airport

Singapore Airlines’ CEO Goh Choon Phong described the COVID-19 pandemic as the greatest challenge the airline had ever faced.

In 2020, like other airlines around the world, they had to ground many flights, implement big pay cuts, and even furlough employees as air travel slowed down due to the pandemic.  

But now over four years later, it seems like they’ve dealt with this big problem well.

Things are looking up?

Air travel demand is way up again, and Singapore’s airlines including SIA, Scoot, and Jetstar Asia are doing much better. 

SIA had its first-ever full-year loss during the pandemic but in May 2024, they reported a record profit of S$2.68 billion for the year ending in March.

P.S. As a reward, employees got a bonus of almost eight months’ salary. 

Scoot is also seeing growth, as they got their first two new planes in April.

Their CEO Leslie Thng said that it shows they are confident in more air travel demand.

Jetstar Asia expects passenger capacity to be above pre-COVID levels by the end of 2024.

A spokesperson said they will keep expanding routes and planes and hiring more staff.

Not totally clear skies

But SIA warned of more competition cutting into revenue.

Factors like rising global tensions, an unsure economy, supply issues, and high inflation could also cause problems.

Last month, some Scoot flights got canceled for various operational reasons, including supply problems.

Experts said losing skilled workers during the pandemic may have contributed too.

Jetstar Asia also cited strong competition as an ongoing challenge.

Competition is especially tough in Asia-Pacific, as flight routes have increased by nearly 60%, and low-cost airline routes quadrupled since 2011.

Theoretically, more competition should lower fares.

But it also means airlines are making less money now that costs are rising as they try to add more flights.

More costs passed down to passengers

With that said, airlines may have to keep raising ticket prices above pre-pandemic levels.

Aviation analyst Brendan Sobie also advised the public not to expect prices to go all the way back down to 2019 levels.

Talent no more

Singapore’s airlines are also dealing with staffing issues that COVID-19 made worse.

singapore airlines staff

Image Credits: singaporeair.com

The risk of losing a job again and wanting a better work-life balance has made some people leave the industry for good.

Former cabin crew said they left for more stable full-time jobs too, since they now value more consistent hours.

At the same time, other growing sectors like e-commerce and tech are offering better work conditions.

Supply chain woes

And that’s not all.

Willie Walsh from the International Air Transport Association (IATA) noted that problems getting new planes delivered could last until 2026.

There are two main reasons for this:

One is the increased demand for spare parts now that more planes are back in service after sitting idle during the pandemic.

But there’s a lack of parts, so some planes can’t fly yet.

This is made worse by fewer workers in aerospace after COVID-19.

Two is all the backlogs from orders placed years ago that now need to be filled before new orders.

However, production disruptions from the pandemic have piled everything up.

It’s a gradual process of getting parked planes flying again and filling orders. 

Resolving all the issues will take time because the chain involves so many specialized global components.

Fuel is also an issue

Lastly, another challenge will be using more sustainable aviation fuel, which is much costlier.

Singapore is leading the push but even our big plant can’t meet future demand alone; more supply sources will be needed.

Nonetheless, on a positive note, technology and AI innovations could help operations, customer service, safety, and maintenance issues.

For instance, Changi Airport Group has already started testing AI baggage screening last November.

While there are clearly mounting challenges, the industry opportunities with Asia’s popularity among travelers could overall benefit Singapore’s airlines and transit hub role.

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