The Qantas Group announced it will cease operations of its Singapore-based low-cost carrier Jetstar Asia by July 31, 2025, as part of a strategic restructure to support fleet renewal and strengthen its core Australian and New Zealand markets.
Approximately 500 jobs will be affected. The airline will honor existing bookings with full refunds or rebookings on alternative carriers when possible.
Qantas cited rising supplier costs, high airport fees, and stiff regional competition as key factors undermining Jetstar Asia’s profitability. The airline expects a AU$35 million loss this fiscal year prior to closure. The group aims to free up to AU$500 million in capital to fund fleet upgrades.
The move raises questions about whether marketing holds value in Asia’s price-sensitive low-cost carrier (LCC) market, dominated by competitors like Scoot and AirAsia.
Marketing experts weigh in:
- Delbert Ty, former CMO of Coffee Meets Bagel, highlighted Jetstar Asia’s failure to develop a distinct market position. Simply being ‘cheap’ was not enough, especially as competitors offered stronger brand identities beyond low fares.
- Sharon Koh, ex-head of Scoot marketing, emphasized marketing’s role in driving direct sales, managing dynamic pricing, encouraging ancillary revenue, and building customer trust amid operational issues.
- Kevin Kan, chief experience officer at Break Out Consulting Asia, noted Jetstar Asia’s past strong campaigns, such as the popular ‘Soar for Singapore’ song, but suggested marketing efforts diminished in recent years, possibly due to budget cuts.
- David Lim, co-founder of Avante Strategies, stressed emotional brand positioning as crucial for LCCs to form passenger loyalty beyond pricing.
Experts agree that in Asia’s competitive LCC market, effective marketing must be rooted in clear, differentiated brand positioning supported by reliable service and performance data. Airlines must also communicate value clearly amid rising costs that limit fare reductions.
While marketing can influence customer choice, price and operational reliability remain paramount factors for travelers.