Australian flag service Qantas mentioned on Wednesday (Jun 11) it is going to shut Jetstar Asia, the group’s Singapore-based low-cost unit, in a bid to recycle as much as A$500 million (US$326.40 million) as a part of its fleet renewal plans.
Qantas mentioned that 13 Jetstar Asia Airbus A320 plane will probably be progressively redeployed to Australia and New Zealand.
Jetstar Asia continues to be negatively affected by rising provider prices, excessive charges at airports and rising competitors within the area.
“This has essentially challenged the low-cost airline’s capability to ship returns corresponding to the stronger performing core markets within the group,” Qantas mentioned.
Jetstar Asia is at present anticipated to submit an underlying EBIT lack of A$35 million within the present monetary yr.
The airline will stop working on Jul 31 and can proceed flights for the following seven weeks.
Jetstar Asia clients with current bookings on cancelled flights will probably be supplied full refunds and the Group will look to reaccommodate clients onto different airways the place potential.
