Qantas has cited fierce competition and rising costs for the shock decision to shutdown its Singapore-based, budget-friendly subsidiary, Jetstar Asia, from 31 July 2025.
Jetstar Asia will continue to operate flights for the next seven weeks on a progressively reduced schedule, before its final day of operation.
The restructure will see up to 500 jobs axed from the Singapore operation.
However, there will be no changes to Jetstar Airways Australia and Jetstar Japan services into Asia.
Jetstar Asia, launched in 2004, offers 16 intra-Asia services to destinations, including Bangkok, Bali, Jakarta, Manila, Osaka and Kuala Lumpur. It has come under increasing competitive pressure from rival low-cost carriers in the region, notably Air Asia and Scoot.
The Australian Financial Review notes that Jetstar Asia is only half-owned by Qantas, with the remainder of the airline controlled by Singaporean investors.
Qantas will transfer 13 Airbus A320 aircraft from its Jetstar Asia operation onto Australian and New Zealand routes.
“Despite delivering exceptional customer service and operational reliability, Jetstar Asia has been impacted by rising supplier costs, high airport fees, and intensified competition in the region,” the company said.
Qantas said employees of Jetstar Asia would be provided with redundancy benefits and employment support services, and the airline is working to find job opportunities elsewhere in the group or with other airlines in the region.