Rising costs, competition force Jetstar Asia to close

MANILA, Philippines — Budget airline Jetstar Asia, which connects the Philippines and Singapore daily, is shutting down its operations after failing to keep up with the rising cost of flying in the region.

In an advisory, Jetstar Asia said it has started winding down its flight schedule in preparation for its eventual closure on July 31.

Jetstar Asia said it has dealt with challenges in sustaining the business in recent years, pressured by ballooning prices of aircraft parts and airport services in Asia.

These factors are making it hard for Jetstar Asia to offer low fares in line with its business model as a low-cost airline. The airline said it has come to the decision to cease operations, promising to support workers who would lose their jobs in the process.

The airline committed to mount all of its remaining flights until July 31. However, as it reduces flights, customers were told to expect some changes, and notices will be sent by the carrier ahead of time.

“Despite our best efforts to offset rising costs, they are expected to continue into the foreseeable future, putting unsustainable pressure on Jetstar Asia’s ability to offer low fares,” the airline said.

“This is incredibly difficult news for our Jetstar Asia team members and customers, and Jetstar is committed to providing support during this time with a range of options in place for all of those impacted,” it added.

Jetstar Asia, however, clarified that its shutdown would have no impact on the flights operated by Jetstar Airways and Jetstar Japan, both of which are also under the
Qantas Group.

On the contrary, Jetstar Airways is asking the Civil Aeronautics Board for a foreign air carrier’s permit to mount flights in the Philippines. If approved, Jetstar plans to operate Manila-Perth and Cebu-Brisbane services thrice weekly starting Nov. 27.

The STAR broke the story on Jetstar Airway’s return to the Philippines earlier this week. The airline had taken an 11-year hiatus here following the 2014 closure of its Manila-Darwin flights that lasted for three years.

In the Philippines, Jetstar Asia offers daily flights between Manila and Singapore, a route that in itself is considered one of the most competitive to operate in.

The country’s local carriers are heavily invested in the Manila-Singapore route, with flag carrier Philippine Airlines and low-cost operator Cebu Pacific both flying in it multiple times daily.