JAKARTA/KUALA LUMPUR -- After operating for more than 20 years, Singapore-based budget airline Jetstar Asia announced its closure, citing increased competition and rising costs.
The shutdown of Jetstar Asia, a subsidiary of Australia's flag carrier Qantas, highlights the difficulties that low-cost carriers (LCCs) face in Southeast Asia. Although the region's low-cost carrier market is expected to continue growing, operators are being forced to accept lower profit margins, with analysts predicting stiffer competition this year amid rising cost concerns.
