Qantas axes Jetstar Asia with 500 jobs to go and $35 million in losses
Flights will operate until July 31 on a 'reduced schedule'.
Qantas has axed its low-cost carrier Jetstar Asia with 500 jobs in peril.
Qantas told the ASX on June 11 that Jetstar Asia had faced "growing challenges" in recent years.
The Singapore-based low-cost airline is expected to post a $35 million loss, Qantas said.
The carrier will operate flights until July 31 on a "progressively reduced schedule" and customers with existing bookings on cancelled flights will be offered full refunds.
The closure will affect 16 intra-Asia routes although Jetstar Airways services into Asia will not be disrupted.
Thirteen A320 planes will be redeployed to Australia and New Zealand to support Qantas' fleet renewal and replace leased planes on Jetstar's domestic routes, Qantas said.
Around 500 jobs are expected to be lost in the region.
Qantas CEO Vanessa Hudson said it was a "tough day" for staff.
"Despite their best efforts, we have seen some of Jetstar Asia's suppliers' costs increase by up to 200 per cent, which has materially changed its cost base," she said.
Carla Mascarenhas is a journalist with Explore Travel and The Senior. She specialises in deep issues affecting Gen X and beyond, and the latest in travel news. Contact her on carla.mascarenhas@austcommunitymedia.com.au
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