Jetstar Asia staff to receive four weeks' salary per year of service as closure confirmed

SINGAPORE: Jetstar Asia staff who are being retrenched due to the airline’s closure will receive four weeks' salary for every year they have served. The announcement follows Qantas Group’s decision to shut down the Singapore-based budget carrier as part of a broader strategic restructure. On 11 June, Qantas confirmed that Jetstar Asia will cease all operations by 31 July 2025. More than 500 employees will be affected. In addition to redundancy payments, they will also receive a financial year 2025 bonus, a special thank-you payment, and continued access to staff travel privileges for a period equal to their years of service. A Jetstar Asia spokesperson stated, “We are committed to supporting team members who are impacted by this announcement the best way we can.”

Union support and negotiated outcomes

The Singapore Manual and Mercantile Workers’ Union (SMMWU) has been involved in discussions since being informed of the closure. Secretary-general Andy Lim said the union worked with Jetstar Asia’s management to ensure fair compensation and respectful handling of the retrenchment process. SMMWU added that it is dedicated to providing job placement help, career guidance, and financial support to those affected. “The union would leverage the Labour Movement network, including the NTUC Aviation and Aerospace (A&A) cluster of unions, to assist affected members and workers with job placement and career advisory services within the A&A industry,” SMMWUsaid in a statement. The Taskforce for Responsible Retrenchment and Employment Facilitation is also working alongside Jetstar Asia and SMMWU to offer assistance. The taskforce includes representatives from the Ministry of Manpower, Workforce Singapore, the National Trades Union Congress (NTUC), and NTUC’s Employment and Employability Institute (e2i). Job-matching support is being coordinated by SMMWU and e2i, with the airline committing to a retrenchment package aligned to Singapore’s Tripartite Advisory on Responsible Retrenchment. Lim added that eligible union members can also tap into the Union Training Assistance Programme (UTAP) to offset training costs should they require skills upgrading. Lim said affected workers can also seek further employment support through the SkillsFuture Jobseeker Support (JS) scheme that provides temporary financial support of up to S$6,000 over 6 months to involuntarily unemployed individuals, to support them in finding a job that makes better use of their skills and experiences.

Rising supplier costs render Jetstar Asia financially unsustainable

Jetstar Asia’s closure comes as Qantas Group embarks on a significant business restructure. This includes a focus on fleet renewal and reinforcing core markets in Australia and New Zealand. Vanessa Hudson, Qantas Group CEO, stated, “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.” According to Qantas, supplier costs for Jetstar Asia rose by up to 200 percent, coupled with high airport fees and growing regional competition. These pressures heavily impacted the airline’s cost structure and profitability, with a projected underlying EBIT loss of US$35 million this financial year.

Closure limited to Singapore-based routes; Other Jetstar operations unaffected

Despite efforts to reduce losses, Qantas determined that ceasing Jetstar Asia operations was the most sustainable path forward. Until 31 July, Jetstar Asia will continue running a reduced flight schedule. The closure only affects intra-Asia routes operated from Singapore. Other Jetstar entities, including Jetstar Airways in Australia and New Zealand and Jetstar Japan, will continue their operations. Customers holding bookings on affected Jetstar Asia routes will be offered refunds or rebooking options where possible.