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Australia’s Qantas to close budget airline Jetstar Asia

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Singapore-based budget airline Jetstar Asia will close down at the end of July, its Australian owner Qantas has announced.

The low-cost carrier has struggled with rising supplier costs, high airport fees and increased competition from other airlines in the region.

Qantas says the closure will provide it with A$500m ($325.9m; £241.4m) to invest towards renewing its fleet of aircraft, adding that it will redeploy 13 planes for routes across Australia and New Zealand.

The closure of Jetstar Asia will not impact its Australia-based Jetstar Airways operations, nor those of Jetstar Japan, according to a statement from Qantas.

“We have seen some of Jetstar Asia’s supplier costs increase by up to 200 per cent, which has materially changed its cost base,” said Qantas Group Chief Executive Vanessa Hudson in the statement.

The discount airline, which has operated flights for over 20 years, is set to make a A$35m loss this financial year.


BBC News

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