Jetstar Asia staff offered ‘attractive’ severance package and job support after ‘quite sudden’ closure

SINGAPORE: More than 500 Jetstar Asia staff based in Singapore will be laid off when the Qantas low-cost subsidiary ceases operations on Jul 31. The closure was announced to employees through a company-wide email at about 7 a.m. on Thursday (Jun 12), just before the public announcement. While some found the move “extreme,” others appreciated what they described as an “attractive” severance package, Channel News Asia (CNA) reported.

Shortly after the official announcement, a company town hall was held at Changi Airport Terminal 1, with an option to attend virtually, a flight attendant said. During the meeting, management discussed the company’s challenges, including operating expenses and fuel prices, as reasons for Jetstar Asia’s closure.

A cabin crew member who had worked for Jetstar Asia for three years said the news was “sad and disappointing.”  “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.

Meanwhile, a pilot who joined the company less than a year ago told CNA that they had “no real clue” that such a “quite sudden” move was coming. However, he noted that the severance package was “attractive” and “quite good,” especially for those who have been with the airline for longer.

The severance package includes four weeks’ salary for each year of service with the airline, a bonus for the current financial year, a special thank-you payment, and continued access to staff travel perks for a period equal to their tenure.

Jetstar is also supporting employees in securing new roles across the aviation sector. Staff said they were given channels to other airlines, including Singapore Airlines (SIA), Emirates, and Qatar Airways, in addition to Jetstar Airways and Jetstar Japan.

“They handled it quite well, they tried to give us other opportunities,” the pilot said.

Unions have also stepped in for support. Labour chief Ng Chee Meng said the National Trades Union Congress (NTUC), the Singapore Manual and Mercantile Workers’ Union (SMMWU), and NTUC’s Employment and Employability Institute (e2i) would be providing on-site support from next week at Changi’s Terminal 1. Mr Ng said this includes career coaching, employability support, and training.

Mr Ng added that they are exploring opportunities for SIA Group to match affected Jetstar Asia employees, including crew and corporate staff, to suitable roles where possible.

Jetstar Asia “wants to keep the flights going,” said the pilot, adding that cancelling flights now would affect many people, given it’s the holiday period. /TISG

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