Qantas has announced it will close Jetstar Asia, its Singapore-based budget airline after two decades in the air, as it looks to focus on the domestic market.
In an announcement to the ASX Qantas said the closure of Jetstar Asia will enable the airline to recycle up to $500m in capital and support its fleet renewal program.
The airline said it would redirect 13 Jetstar Asia Airbus A320 aircraft to be progressively redeployed to Australia and New Zealand bringing more low fares and more local jobs.
The decision will not affect any flights in Australia.
“Despite delivering exceptional customer service and operational reliability, Jetstar Asia has been impacted by rising supplier costs, high airport fees, and intensified competition in the region. This has fundamentally challenged the low-cost airline’s ability to deliver returns comparable to the stronger performing core markets in the group,” the company said.
