Qantas Group to Shut Down Jetstar Asia Operations

Moral of the story: Being low-cost is no longer enough. Without scale, efficiency, and solid financial backing, it’s getting harder for smaller airlines to stay in the game — especially with the kind of cut-throat competition we’re seeing in the region.

The Qantas Group on Wednesday announced the closure of operations of Jetstar Asia, its low-cost Singapore-based airline, by the end of July. The decision, made with majority shareholder Westbrook Investments, comes after years of mounting pressure on the carrier’s cost base and operating environment.

The shutdown will displace more than 500 staff based in Singapore. Qantas has committed to offering redundancy packages and job placement assistance, both within the Qantas Group and with other airlines in the region.

Jetstar Asia, which currently operates 16 routes across Asia including to Thailand, Malaysia, Indonesia, the Philippines, and Sri Lanka, will wind down with a reduced schedule between now and July 31.

This does not impact Jetstar Airways’ domestic and international operations in Australia and New Zealand or Jetstar Japan.

Despite the closure, Qantas sai