Jetstar Asia shuts down, planes diverted to | Australian Markets

More Qantas planes will fly by Australian skies when the airline shuts its intra-Asia service Jetstar Asia within months.

The closing Jetstar Asia battle will take off on July 31 and 500 Singapore-based employees will lose their jobs as Qantas Group sharpens its concentrate on Australian and New Zealand markets.

There are no modifications to any flights connecting Australian airports to locations in Asia or modifications to Jetstar Japan providers.

Some 13 Jetstar Asia Airbus A320 planes will ultimately exchange leased plane and older planes utilized in Australia and New Zealand, which the airline claims will create 100 native jobs.

In a assertion to the ASX, Qantas Group attributed the closure of Jetstar Asia to better competitors, rising provider prices and high airport charges.

Jetstar Asia is on monitor to make a $35 million loss by the tip of the financial 12 months.

Qantas Group chief govt Vanessa Hudson mentioned it was a “very tough day” for employees and the airline had made low-cost journey accessible to thousands and thousands of prospects over more than 20 years.

“We have seen some of Jetstar Asia’s supplier costs increase by up to 200 per cent, which has materially changed its costs base,” Ms Hudson mentioned.

The airline mentioned the transfer would “unlock” up to $500 million in capital which might be reinvested into its core companies.

Passengers with bookings for cancelled flights will likely be entitled to refunds or moved onto different flights.

The airline mentioned Jetstar Asia workers had been entitled to redundancy advantages and could be re-employed within Qantas Group the place potential.