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Jetstar Asia Is Closing Down. Here Are 5 Things You Need To Know

Customers with bookings may follow the necessary steps to initiate a refund.

Cover image via The Edge Singapore & WikiWand

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Australia's Qantas announced today, 11 June, that it will close Jetstar Asia, its Singapore-based budget airline

The decision comes as the group grapples with escalating supplier costs, increased airport fees, and fierce competition among low-cost carriers.

Jetstar Asia will cease all operations on 31 July, continuing its flights for the next seven weeks until then. 

The airline confirmed that customers with existing bookings on cancelled flights will be offered full refunds, and the Qantas Group will endeavour to rebook passengers onto alternative airlines wherever feasible.

Here's all you need to know about Jetstar Asia's closure:

1. Sixteen routes are affected

Image via CNA

Qantas confirmed that 16 intra-Asia routes would be impacted by Jetstar Asia's closure.

The airline currently operates flights connecting Singapore to various destinations across Malaysia, Indonesia, Thailand, the Philippines, China, Sri Lanka, Japan, and Australia.

However, Jetstar Airways' domestic and international operations in Australia and New Zealand, as well as Jetstar Japan, will not be affected by this move.

Qantas also stated that the 13 Airbus A320 aircraft currently operated by Jetstar Asia will be progressively redirected to Australia and New Zealand.

2. Customers with existing bookings may receive a refund

Customers whose bookings are affected by the closure will be given the option of a full cash refund. The company plans to notify these customers via the email address provided during their initial booking.

Those who booked their flights through a travel agent or another airline are advised to contact that third party directly, rather than Jetstar Asia.

Subject to availability, certain passengers may also be offered seats on alternative flights operated by Qantas-owned airlines. 

The company specified that customers with connecting flights to or from Australia, along with those travelling between Singapore and Bali, Manila, or Osaka, are among those who might receive such alternative flight arrangements.

3. Flights bound to fly before 31 July may be affected by its 'progressively reduced schedule'

Whether a flight before its closure date is impacted depends on Jetstar Asia's 'progressively reduced schedule'. 

The airline will directly notify affected customers or their respective travel agents if their flight is among those impacted.

Passengers holding an active booking with Jetstar Asia can also access the latest information through the airline's dedicated travel alert page.

Image via CNA

4. Jetstar Asia memberships will be cancelled

All Singapore-based Club Jetstar memberships will be cancelled, with the annual fee being refunded. These refunds are scheduled to commence from August, and will be issued back to the credit or debit card used for the original membership purchase.

Should a refund to the original card not be feasible, the airline will provide further instructions via email. 

It's important to note that memberships that already expired before 11 June will not be eligible for a refund.

5. Rising costs and intense competition killed the company

Jetstar Asia continues to be adversely impacted by escalating supplier costs, increased airport fees, and intensifying regional competition.

These factors critically hindered its ability to generate returns comparable to the more profitable core markets within the Qantas Group. 

Specifically, the low-cost unit has grappled with mounting pressure from other Southeast Asian budget carriers, including Capital A's AirAsia and Singapore Airlines' Scoot.

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