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SINGAPORE: The closure of low-cost airline Jetstar Asia has come as a shock to employees who did not expect such an "extreme" measure.
But staff interviewed by CNA late on Thursday (Jun 12) praised the company for the support extended thus far, from severance packages to help with finding new jobs.
More than 500 people based in Singapore will be laid off as a result of the airline ceasing operations on Jul 31.
Jetstar Asia staff said they were first informed through a company-wide email at about 7am on Wednesday, slightly ahead of the public announcement.
A pilot who has been with Jetstar Asia for under a year said "it was quite sudden” and "there was no real clue" that something like this would happen.
“We did hear that the company wasn’t making much money per se, but at most we expected no increment or no bonuses, which we would’ve just sucked it up and lived with it,” said the pilot, who declined to be named.
A cabin crew member who has worked for the airline for about three years said the news was "sad and disappointing”.
“I had a flight soon after the news broke. I had a bit of mixed feelings, but as cabin crew, we have to stay professional,” he added.
He said his colleagues have become like family. "The management did call us up individually and asked us how we are coping and are we okay, because we still have to work,” he said.
The flight attendant, who also did not want to be identified, said a company townhall was held soon after the official announcement.
It was a physical meeting at Changi Airport Terminal 1, with the option to attend virtually.
During the session, management talked about the company’s challenges from operating expenses to fuel prices.
The head of its parent company Qantas Group had said that the low-cost carrier was facing rising supplier costs, high fees at airports and rising competition in the region.
"THEY HANDLED IT QUITE WELL"
Staff will receive four weeks' salary for every year they have worked for Jetstar, along with a bonus for the current financial year.
There will also be a special thank-you payment and continued access to staff travel benefits for a period equivalent to their tenure.
“The severance package is attractive,” the pilot told CNA. “In fact it is quite good, especially for the guys who have been in the company longer.”
Jetstar is also helping employees find jobs elsewhere in the aviation sector.
“For pilots, they have helped link us up with the HR (human resources) of other airlines to get us to go over, or have them come over, to give us a talk about their openings,” he added.
The air steward similarly said: “They are providing us other avenues, and most of us are likely going to the other companies.
“They handled it quite well, they tried to give us other opportunities," he added. "Not just the other Jetstar arms, but they also gave us channels to other airlines.”
These include Singapore Airlines, Emirates and Qatar Airways, apart from Jetstar Airways and Jetstar Japan, according to staff members.
Labour chief Ng Chee Meng had earlier said that the National Trades Union Congress (NTUC), together with the Singapore Manual and Mercantile Workers' Union (SMMWU), was also working to help affected staff with job placement and career advisory support, particularly within the aviation and aerospace sectors.
The NTUC and its Employment and Employability Institute (e2i) will be on-site at Changi Airport Terminal 1 from next week to offer the likes of career coaching, skills upgrading and employability assistance, he said.
"We are exploring opportunities for Singapore Airlines Group, a unionised company, to match affected Jetstar Asia employees, including crew and corporate staff, to suitable roles where possible," said the NTUC secretary-general.
"The NTUC Aerospace and Aviation Cluster will work with (the) Civil Aviation Authority of Singapore and Changi Airport Group to identify opportunities for the affected employees as well."
The pilot told CNA that while Jetstar Asia will begin “tapering down” in July ahead of its closure at the end of the month, it is currently maintaining its flight frequency as much as possible.
“The management said they are not going to disrupt the flight(s) .... and want to keep the flights going,” he said.
“They won’t want to suddenly cancel this month as a lot of people will be affected, given it’s the holiday period.”
The airline carried approximately 2.3 million passengers at Changi Airport in 2024, accounting for around 3 per cent of the airport’s total passenger traffic.
