Jetstar Selects Singapore

Melbourne, 12 February 2010 - Australia’s Jetstar has chosen Singapore as a key hub as part of its major expansion plans.





The budget carrier signed an agreement with Changi Airport Group to make Singapore its biggest operating base in Asia. Jetstar said the three-year deal will help reduce its operating costs and grow its traffic in the region.





With its new partnership with Changi Airport Group, Jetstar is looking to expand its routes in the region and grow new ones.





Apart from Changi, Jestar had also considered airports in Kuala Lumpur, Bangkok and Ho Chi Minh, said its chief executive officer Bruce Buchanan.





“Singapore is of high strategic importance to Jetstar and equally of great importance to the Qantas Group. This agreement provides further leverage to us now seeking the full benefits of a burgeoning hub operation in Singapore,” said Buchanan. “The clear operational advantages of Singapore as a hub and primary access point into Asia are clear and can now be further built upon.”





Jetstar is keen to expand its long-haul routes out of Singapore. The carrier is still waiting for the arrival of 15 Boeing 787 Dreamliner aircraft, which are due in 2013. In addition, it has 65 A320 aircraft on order to arrive at different times over the next five to six years and has options for another 40 new aircraft by 2015.





Qantas owns Jetstar and also has a 49 percent stake in Singapore’s Jetstar Asia.





The decision to make Singapore its hub follows Jetstar’s agreement this month to a strategic alliance with the Malaysian low-cost airline AirAsia aimed at slashing procurement costs.

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