Australia’s Qantas to shut price range airline Jetstar Asia | EUROtoday

Singapore-based price range airline Jetstar Asia will shut down on the finish of July, its Australian proprietor Qantas has introduced.

The low-cost provider has struggled with rising provider prices, excessive airport charges and elevated competitors from different airways within the area.

Qantas says the closure will present it with A$500m ($325.9m; £241.4m) to take a position in the direction of renewing its fleet of plane, including that it’s going to redeploy 13 planes for routes throughout Australia and New Zealand.

The closure of Jetstar Asia won’t impression its Australia-based Jetstar Airways operations, nor these of Jetstar Japan, in keeping with an announcement from Qantas.

“We have seen some of Jetstar Asia’s supplier costs increase by up to 200 per cent, which has materially changed its cost base,” mentioned Qantas Group Chief Executive Vanessa Hudson within the assertion.

The low cost airline, which has operated flights for over 20 years, is about to make a A$35m loss this monetary yr.