Parent company Qantas pledges redundancy benefits, employment support services
Singapore-based low-cost airline Jetstar Asia is shutting down on 31 July, leading to the retrenchment of more than 500 employees in Singapore.
The shutdown of the intra-Asia airline was announced on Wednesday by its parent company, Australian-flag carrier Qantas, which cited a "strategic restructuring."
"Jetstar Asia will continue to operate flights for the next seven weeks on a progressively reduced schedule, before its final day of operation on 31 July 2025," Qantas said in a statement.
Over 500 employees in Singapore will be laid off as a result of the closure, The Straits Times reported. Qantas said all employees will be provided redundancy benefits and employment support services.
"Qantas is also actively working to find job opportunities across the Group and with other airlines in the region," the airline said.
Channel News Asia reported employees who lose their jobs because of the closure will receive four weeks' worth of salary for every year they worked for the company.
They will also get a bonus payment for the financial year 2025, a special thank you payment, as well as continued access to staff travel benefits for a period equivalent to their tenure, according to the report.
"We are incredibly proud of the Jetstar Asia team and the work they have done to deliver low fares, strong operational performance, and exceptional customer service. This is a very tough day for them," said Qantas Group CEO Vanessa Hudson in a statement.
Meanwhile, the National Trades Union Congress (NTUC) and the Singapore Manual & Mercantile Workers' Union (SMMWU) are also offering job placement and career advisory support to affected employees.
"Starting next week, NTUC Singapore and NTUC's Employment & Employability Institute, e2i, will be on-site at Changi Airport Terminal 1 to provide direct support, including career coaching, skills upgrading, and employability assistance," said Ng Chee Meng, NTUC secretary-general, in a statement.
Ng said they have been informed of the retrenchment exercise in advance, and that the SMMWU has worked closely with Jetstar Asia to support impacted staff.
"The retrenchment benefits provided are in line with the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment," he said.
NTUC is exploring opportunities for Singapore Airlines Group to match affected Jetstar Asia employees to suitable roles, according to the NTUC official. The NTUC Aerospace and Aviation Cluster will also work with the Civil Aviation Authority of Singapore and Changi Airport Group to identify opportunities for impacted staff.
"Our focus remains on doing all we can to help workers land on their feet and move forward with confidence. Transitions are never easy, but our workers will not go through this alone," Ng said.
Qantas said Jetstar Asia's closure was a result of growing challenges in recent years, such as rising supplier costs, high airport fees, and intensified competition in the region.
"Despite their best efforts, we have seen some of Jetstar Asia's supplier costs increase by up to 200%, which has materially changed its cost base," Hudson said. "I want to sincerely thank and acknowledge our incredible Jetstar Asia team who should be very proud of the impact they have had on aviation in the region over the past two decades."
The combined impact of the restructuring costs and one-off redundancy is estimated to be about $175 million, with approximately a third in FY25 and the remainder across FY26.
The low-cost airline's performance deteriorated in the second half and is expected to post an EBIT (earnings before interest and taxes) loss of $25 million, according to Qantas.
