No significant impact to travellers after Jetstar Asia closure, say analysts
Travellers will not be significantly impacted with the impending closure of Singapore-based low-cost carrier (LCC) Jetstar Asia, aviation analysts have said.The Qantas subsidiary announced on June 11 that will be ceasing operations, effective July 31. Speaking to AsiaOne, V. Mathivaanan, Covering Programme Chair for Diploma in Aviation Management, School of Engineering, Republic Polytechnic, said that Jetstar Asia's closure does not signal a downturn for the larger aviation industry.«In fact, the global aviation industry is experiencing solid growth, both in passenger travel and financial performance,» he said, citing International Air Transport Association (IATA) data which revealed that global passenger demand for April rose by eight per cent year-on-year.The data also found that international travel demand rose by 10.8 per cent year-on-year, with a record load factor of 84.1 per cent.Escalating cost pressures on LCCsMathivaanan highlighted the competitive environment that LCCs face, especially as they grapple with «tight financial margins while having to balance rising operational costs».