Job losses, cancelled routes, and refunds: Qantas’ latest move hits hard, but here’s what travellers can do next
- Replies 3
Australia’s airline industry is undergoing yet another major shake-up—one that could impact both travellers and workers alike.
A recent decision from one of the country’s biggest carriers has left many rethinking the future of budget air travel in the region.
Here’s what prompted the move and who’s set to feel the effects first.
Qantas made headlines this week with a bold announcement that signalled a significant shift in its operations across Asia—one that’s set to reshape the region’s aviation market and impact hundreds of workers.
The decision centred on Jetstar Asia, Qantas’ budget carrier based in Singapore, which had served the region for over two decades.
Despite its legacy and popularity, the airline faced mounting financial pressure, with soaring supplier costs, elevated airport charges, and fierce competition proving too much to overcome.
The airline had been projected to record an underlying loss of $35 million this financial year.
Qantas Group CEO Vanessa Hudson said, ‘This is a very tough day. Jetstar Asia has been a pioneering force in the Asian aviation market for more than 20 years, making air travel accessible to millions of customers across Southeast Asia. Despite their best efforts, we have seen some of Jetstar Asia’s supplier costs increase by up to 200 per cent, which has materially changed its cost base.’
Operations were set to cease by the end of July, and the move would affect 16 intra-Asia routes from Singapore. However, Qantas confirmed that flights between Australia and Asia would continue without disruption, covering popular destinations such as Singapore, Thailand, Indonesia, Vietnam, Japan and South Korea.
The shutdown was expected to impact around 500 jobs. Qantas said all affected employees would receive redundancy pay and access to employment support services. It also stated it was working to identify other job opportunities across the Qantas Group and with other airlines in the region.
In the midst of the closure, Qantas aimed to reallocate the fleet of 13 mid-life A320 aircraft to core markets in Australia and New Zealand. The company believed this would assist with fleet renewal, help lower airfares, and create over 100 new local jobs.
According to the airline, this strategy could unlock up to $500 million in capital—funds that would be reinvested into domestic operations in a bid to strengthen the business at home.
If you’ve ever wondered what goes on behind the scenes when an airline makes a major call like this, you’re not alone.
For those who’ve travelled far and wide, it’s fascinating—and at times confronting—to see how quickly things can change in the aviation world.
Take a look at this short video to better understand what really drove the decision.
Source: Youtube/9 News Australia
Customers booked on impacted routes would be entitled to full refunds, with Qantas offering assistance to help them secure alternative travel arrangements.
While the closure marked the end of an era for Jetstar Asia, Qantas positioned it as a necessary step to secure its future in a rapidly changing aviation landscape.
With budget airlines becoming less reliable across the region, do you think affordable international travel is slipping out of reach for everyday Aussies? Let us know your thoughts in the comments.
In a previous story, we covered a troubling incident involving Qantas and the serious condition of one of its staff members—a reminder that the airline’s internal decisions can have real human consequences.
For senior Aussies who value transparency and worker welfare, stories like these can shape how we view major companies we’ve trusted for decades.
If you missed it, it’s worth revisiting to understand the broader picture of Qantas’ recent challenges.
Read more: ‘We are truly sorry for the devastating incident’: Qantas takes accountability for staff’s condition
A recent decision from one of the country’s biggest carriers has left many rethinking the future of budget air travel in the region.
Here’s what prompted the move and who’s set to feel the effects first.
Qantas made headlines this week with a bold announcement that signalled a significant shift in its operations across Asia—one that’s set to reshape the region’s aviation market and impact hundreds of workers.
The decision centred on Jetstar Asia, Qantas’ budget carrier based in Singapore, which had served the region for over two decades.
Despite its legacy and popularity, the airline faced mounting financial pressure, with soaring supplier costs, elevated airport charges, and fierce competition proving too much to overcome.
Qantas axes Jetstar Asia amid cost surge. Image source: Pexels/Jeffry S.S.
The airline had been projected to record an underlying loss of $35 million this financial year.
Qantas Group CEO Vanessa Hudson said, ‘This is a very tough day. Jetstar Asia has been a pioneering force in the Asian aviation market for more than 20 years, making air travel accessible to millions of customers across Southeast Asia. Despite their best efforts, we have seen some of Jetstar Asia’s supplier costs increase by up to 200 per cent, which has materially changed its cost base.’
Operations were set to cease by the end of July, and the move would affect 16 intra-Asia routes from Singapore. However, Qantas confirmed that flights between Australia and Asia would continue without disruption, covering popular destinations such as Singapore, Thailand, Indonesia, Vietnam, Japan and South Korea.
The shutdown was expected to impact around 500 jobs. Qantas said all affected employees would receive redundancy pay and access to employment support services. It also stated it was working to identify other job opportunities across the Qantas Group and with other airlines in the region.
In the midst of the closure, Qantas aimed to reallocate the fleet of 13 mid-life A320 aircraft to core markets in Australia and New Zealand. The company believed this would assist with fleet renewal, help lower airfares, and create over 100 new local jobs.
According to the airline, this strategy could unlock up to $500 million in capital—funds that would be reinvested into domestic operations in a bid to strengthen the business at home.
If you’ve ever wondered what goes on behind the scenes when an airline makes a major call like this, you’re not alone.
For those who’ve travelled far and wide, it’s fascinating—and at times confronting—to see how quickly things can change in the aviation world.
Take a look at this short video to better understand what really drove the decision.
Source: Youtube/9 News Australia
Customers booked on impacted routes would be entitled to full refunds, with Qantas offering assistance to help them secure alternative travel arrangements.
While the closure marked the end of an era for Jetstar Asia, Qantas positioned it as a necessary step to secure its future in a rapidly changing aviation landscape.
With budget airlines becoming less reliable across the region, do you think affordable international travel is slipping out of reach for everyday Aussies? Let us know your thoughts in the comments.
In a previous story, we covered a troubling incident involving Qantas and the serious condition of one of its staff members—a reminder that the airline’s internal decisions can have real human consequences.
For senior Aussies who value transparency and worker welfare, stories like these can shape how we view major companies we’ve trusted for decades.
If you missed it, it’s worth revisiting to understand the broader picture of Qantas’ recent challenges.
Read more: ‘We are truly sorry for the devastating incident’: Qantas takes accountability for staff’s condition
.png){kind=icon}
