Singapore-based budget airline Jetstar Asia is to be shut down at the end of next month.
Part-owner Qantas said the closure of loss-making Jetstar Asia, which launched in 2004, will not affect Australia-based Jetstar Airways or Jetstar Japan.
Jetstar Asia will gradually reduce its schedule over the next few weeks, until 31 July, after which all future flights will be cancelled.
A total of 16 routes are affected, including flights from Singapore to Malaysia, Indonesia and the Philippines.
In a message on its website, Jetstar Asia said: “Jetstar Asia’s (3K) business has been increasingly challenged in recent years by escalating supplier costs, airport fees and aviation charges as well as growing capacity and competition in the region.
“Despite our best efforts to offset these rising costs, they are expected to continue into the foreseeable future, putting unsustainable pressure on Jetstar Asia’s ability to offer low fares.
“This is incredibly difficult news for our Jetstar Asia team members and customers, and the Jetstar Group is committed to providing support during this time with a range of options in place for all those impacted.”
It said it will begin processing passenger refunds in August. Customers with vouchers for future travel will also receive cash refunds, it added.
