Qantas has confirmed it will close intra-Asia airline Jetstar Asia with 16 routes impacted.
Jetstar Asia will be no more, with Qantas Group confirming it will close the Singapore-based airline – the decision made in partnership with majority shareholder Westbrook Investments.
The airline will continue to operate for the next seven weeks on a progressively reduced schedule, with its final day of operation to be 31 July.
Jetstar Asia is expected to post a $35 million underlying EBIT loss this financial year, a statement on the ASX said.
According to the statement, “The closure of Jetstar Asia only impacts the intra-Asia routes operated by the airline from its base in Singapore.
“It does not impact Jetstar Airways’ domestic and international operations in Australia and New Zealand or Jetstar Japan.
“Jetstar Airways will continue to fly from Australia into Asia, including to all its popular destinations across Singapore, Thailand, Indonesia, Vietnam, Japan and South Korea.”
All affected Jetstar employees will be provided redundancy benefits as well as employment support services.
The closure of the airline will unlock $500 million in fleet capital to be recycled into the Group’s core business, while the 13 A320 aircraft in the Jetstar Asia fleet will be progressively redeployed to Australia and New Zealand.
More details in today’s issue of Travel Daily.