The low-cost arm of Australian airline Qantas says it will shut down next month due to rising operating costs and competition
The shutdown of Singapore-based airline Jetstar Asia is a sign of turbulent times ahead for budget carriers in the region as they grapple with higher costs and stiffer competition, aviation analysts have said.
On Wednesday, Jetstar Asia, the low-cost arm of Australian airline Qantas, announced that it would close down at the end of July.
The decision followed a review of the budget airline, which had in recent years been challenged by rising supplier costs, airport fees, aviation charges and competition in the region, Jetstar group said in a statement.
Jetstar Asia added that the increase in costs was projected to continue, putting unsustainable pressure on its ability to offer low fares, which was fundamental to its business model.
