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Turbulence ahead for budget travel? Jetstar Asia grounded by rising costs

The Singapore-based airline announces closure from July 31, with 28 weekly Bangkok routes affected

Napatsorn Ngaosawangjit
Written by
Napatsorn Ngaosawangjit
Staff writer, Time Out Thailand
Jetstar Asia
Photograph: Jetstar Asia
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Singapore has long been a top destination for travellers from Bangkok, thanks to its proximity and diverse attractions. Just two hours away by air, the city-state offers everything from world-class shopping and dining to cultural landmarks. Likewise, many Singaporeans regularly visit Thailand, making the connection between the two nations strong.

So, it may come as a surprise that low-cost carrier Jetstar Asia will cease operations from July 31. The airline cited rising supplier costs, increased airport fees, soaring aviation expenses, and heightened regional competition as reasons for the decision.

The closure impacts 16 intra-Asia routes, including flights between Singapore and Bangkok. However, Jetstar Airways and Jetstar Japan services within Asia remain unaffected.

Since launching in December 2004, Jetstar Asia has been a popular choice for affordable travel between the two cities, operating up to 28 weekly round trips at its peak. Its Airbus A320 fleet catered to strong demand from both leisure and business travellers.

While airlines like Scoot, Singapore Airlines and Thai Airways will continue to serve this busy route, the loss of 28 weekly flights may reduce seat availability in the short term. This could lead to slightly higher fares on budget routes until other carriers step in to fill the gap.

On the bright side, Jetstar Asia's exit may create opportunities for existing airlines to grow market share or for other low-cost carriers to expand on this well-travelled route. 

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