Singapore-based budget airline Jetstar Asia will close down at the end of July, its Australian owner Qantas has announced.
The low-cost carrier has struggled with rising supplier costs, high airport fees and increased competition from other airlines in the region.
Qantas says the closure will provide it with A$500m ($325.9m; £241.4m) to invest towards renewing its fleet of aircraft, adding that it will redeploy 13 planes for routes across Australia and New Zealand.
The closure of Jetstar Asia will not impact its Australia-based Jetstar Airways operations, nor those of Jetstar Japan, according to a statement from Qantas.
“We have seen some of Jetstar Asia’s supplier costs increase by up to 200 per cent, which has materially changed its cost base,” said Qantas Group Chief Executive Vanessa Hudson in the statement.
The discount airline, which has operated flights for over 20 years, is set to make a A$35m loss this financial year.
Prime Minister Dr. Harini Amarasuriya stated that the government is working towards a tourism development initiative aimed at promoting tourism at rural level by strengthening the capacity of local tourism service providers.
The Prime Minister made these remarks while participating in the inaugural ceremony of the China–Sri Lanka–Maldives Tourism Forum, held yesterday (June 16) at the Cinnamon Life Hotel in Colombo, under the theme “Connectivity and Collaborative Success along the Silk Road.”
“Sri Lanka is committed to strengthening these areas within our own national framework. We are currently implementing reforms to promote eco-tourism, improve digital tourism infrastructure, and enhance the capacity of local tourism service providers. We are also working to expand community-based tourism initiatives that ensure benefits flow to grassroots levels, especially in underrepresented regions of our country. It is our belief that by prioritizing sustainability, equity, and innovation, we can build a tourism industry that serves both the visitor and the host.”
“Sri Lanka is committed to strengthening these areas within our own national framework. We are currently implementing reforms to promote eco-tourism, improve digital tourism infrastructure, and enhance the capacity of local tourism service providers. We are also working to expand community-based tourism initiatives that ensure benefits flow to grassroots levels, especially in underrepresented regions of our country. It is our belief that by prioritizing sustainability, equity, and innovation, we can build a tourism industry that serves both the visitor and the host.”
Speaking, Chinese ambassador – Mr. Qi Zhenhong called to forge a new paradigm of China-Sri Lanka-Maldives tourism cooperation and contribute to building a China-Sri Lanka-Maldives community with a shared future.
He pointed out that China is the 5th largest source market for tourism in Sri Lanka, with over 130,000 Chinese visitors in 2024. Meanwhile, China remains the largest source market for the Maldives, with 260,000 Chinese tourists visiting in 2024.
Noting that China’s friendship with both countries exceed millennia, he made 03 recommendations :
Jointly Build a Convenient Tourism Circle: Promote more direct flight routes and introduce “multi-stop” tourism products, allowing tourists to explore all three countries in a single journey.
Jointly Shape a Quality Tourism Chain: Strengthen the alignment of standards for tourism safety, service quality, and ecological protection. Encourage joint development of high-end resorts, cultural discovery tours, and eco-adventure products by enterprises from all three countries. Implement more substantive measures to facilitate tax refunds for tourists’ purchases.
Jointly Outline a Cultural Tourism Map: Organize trilateral tourism and cultural festivals, exchange performing arts groups, and host intangible cultural heritage exhibitions. Enhance tour guide training to cultivate more tourism professionals proficient in Chinese, Sinhala, and Dhivehi. Promote youth exchanges to foster deep friendships among the future generations of our three nations through travel.
The event was also attended by Deputy Minister of Foreign Affairs and Foreign Employement of Sri Lanka – Mr. Arun Hemachandra, leaders from the Chinese Embassy in the Maldives, and a delegation from the Ministry of Culture and Tourism of China, government representatives and industry experts.
The forum will span a week, featuring a diverse range of activities such as thematic seminars, exhibitions and promotions, business negotiations, technical inspections, and familiarization trips. During the forum, the International Tourism Alliance of Silk Road Cities will announce an initiative for regular cooperation among the alliance cities of China (Quanzhou), Sri Lanka (Colombo, Kandy, Kotte), and the Maldives (Malé). Commemorative plaques will be awarded to the participating alliance member cities from the three nations.
The event is jointly hosted by the Ministry of Culture and Tourism of China, the Ministry of Foreign Affairs, Foreign Employment, and Tourism of Sri Lanka, the Ministry of Tourism and Environment of the Maldives, the Chinese Embassy in Sri Lanka, and the Chinese Embassy in the Maldives, and co-organized by Network of International Culturalink Entities of China and the Sri Lanka Tourism Promotion Bureau.