Airline Ceases Operations: What Happens if You Hold a Ticket?
Sayonara, JetStar Asia: Low-Cost Airline to Shutter Operations by July End
By Xavier Martinage Published on
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Brace yourself for a rise in airfare, folks. Singapore-based but Aussie-owned low-cost carrier JetStar Asia is set to shut shop by the end of July, reportedly incurring a debt of around $22 million this year. It's the regional subsidiary of JetStar Airways and Qantas Group's baby, with a fleet of 18 Airbus A320-200 serving 25 destinations.
The unfortunate news comes after the airline could no longer keep up with the soaring costs of its suppliers and the fierce competition in the region that includes the likes of Scoot, AirAsia, Spring Airlines, and Indigo. Despite fierce resistance, Qantas has decided to throw in the towel, and JetStar Japan and JetStar Airways in Australia will remain unaffected by this decision.
Low-Cost Flights: When Low Prices Can't Compete
But what about those who have already booked their tickets? Worry not, says JetStar Asia, as they promise to get in touch with affected passengers regarding the status of their flights in the coming weeks. For bookings beyond July, a full refund is on the table. In total, 16 routes in Malaysia, Indonesia, and the Philippines will be impacted by this sudden closure, with Qantas recovering over $325 million and deploying 13 additional aircraft on its routes in Australia and New Zealand.
approximately 500 employees will lose their jobs, but JetStar Group CEO, Stephanie Tully, vows to help them find new roles in the industry. "Our team has provided a high-quality service, and I'm proud of their top-notch operational performance," she said.
Will JetStar Asia Take Flight Again?
The closure has left travelers buzzing on social media, with some expressing their dismay. It's worth noting that in February's AirlineRatings.com ranking, JetStar was the second-best low-cost airline. In 2024, it was the leader of the safest low-cost airlines in the world, but success had a price, with annual losses taking their toll over the past 20 years.
What Happens Next?
While the specifics of the refund process and impact on employees are yet to be revealed, travelers and affected employees are advised to reach out to JetStar Asia for more information regarding their bookings and any potential adjustments or cancellations. As for aircraft, Qantas will deploy 13 additional aircraft on its routes in Australia and New Zealand.
The closure of JetStar Asia, a low-cost airline, has left some travelers in a quandary about their future flights, as the airline has promised to contact passengers affected by the sudden shutdown regarding their booking status.
Meanwhile, the fierce competition in the region and soaring costs have been cited as the main reasons for JetStar Asia's financial struggle, with the airline reporting a debt of around $22 million this year. This decision by Qantas will unfortunately result in the loss of jobs for approximately 500 employees, but the CEO of JetStar Group, Stephanie Tully, has pledged to help them find new opportunities within the industry.
