Jetstar Asia's shutdown: Does marketing even matter with price conscious customers?

The Qantas Group will be ceasing the operations of its Singapore-based low-cost subsidiary, Jetstar Asia, as part of a strategic restructure which supports its historic fleet renewal program and to strengthen its core businesses in Australia and New Zealand. Jetstar Asia's flights will continue to operate at a progressively reduced schedule until 31 July 2025.

The closure will lead to approximately 500 jobs being impacted, according to the Straits Times, and customers with existing bookings on cancelled flights will be offered full refunds, while the group will look to reaccommodate customers onto other airlines where possible.

Explaining the reason for the closure, the group said that Jetstar Asia has been impacted by rising supplier costs, high airport fees, and intensified competition in the region, fundamentally challenging its ability to deliver returns comparable to the stronger performing core markets in Qantas Group. 

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The airline is expected to post an AU$35 million underlying EBIT (earnings before interest and taxes) loss this financial year, prior to the closure decision. The statement further detailed that the closure would enable the Qantas Group to recycle up to AU$500 million in capital, supporting its historic fleet renewal program.

In a price-driven market, does marketing still matter?

The low-cost carrier (LCC) space in Asia is fiercely competitive, with dominant players such as Scoot and AirAsia shaping consumer expectations around price and frequency of flights. In such an environment, where travellers often compare fares down to the last dollar, it is easy to question whether branding, positioning, or marketing could have made any meaningful difference for Jetstar Asia.

But is being ‘cheap’ enough to win in Asia’s skies? In light of Jetstar Asia’s exit, MARKETING-INTERACTIVE asked marketers if smart marketing and positioning could have helped the airline stand out and survive.

According to Delbert Ty, former CMO of Coffee Meets Bagel and now a fractional marketing leader, Jetstar Asia’s failure to carve out a distinct identity may have been part of the problem. He said, in a crowded LCC market in Asia, Jetstar lacked an effective positioning. Ty also added: 

No amount of marketing can help a brand whose positioning isn't sharp enough. It just won't be financially feasible to sustain any spend if you don't build equity around it.

Jetstar Asia, he argued, was simply positioned as cheap, but even that didn’t always hold up amidst the competition. “When it came to pricing with all the daily variances, it was not even the lowest price most of the time. So, what do you get? You get a brand that positions itself as no frills, but has to compete against Scoot and AirAsia which stand for something way beyond just being cheap,” he added.

Ty also pointed out that without a solid brand foundation, marketing investments are unlikely to deliver long-term value. “The thesis of marketing spend, at least the one we aspire to, is that this will pay dividends as the brand gets built up. However, if it’s not being built on any strong foundation, such as a sharp positioning, it’s not going to be stable enough to stand the test of time, and people will just forget about you.”

Meanwhile, Sharon Koh, former head of marketing of Scoot, and founder of consultancy The Brand Imprint, said LCC marketing plays a vital role in making the carrier stand out from competition and build a strong, differentiated brand positioning. Nevertheless, its functions go beyond that. 

"Marketing needs to be tightly integrated within the entire LCC business ecosystem." said Koh. "On a tactical level, the marketing function is crucial in driving direct sales, including the ability to respond quickly to dynamic pricing and revenue management."

Essentially, to 'fill bums on seats' through fast, impactful, and effective promotional communications that convert marketing messages into ticket sales, is vital for an LCC.

Additionally, Koh noted that marketing needs to support the drive for ancillary revenue by encouraging customers to spend more with the airline beyond the baseline ticket sales, which are often heavily discounted. This is key to increasing overall revenue and profitability.

"At the operational level, marketing’s ability to respond publicly to inevitable operational issues such as flight cancellations or delays, and to communicate the airline’s inflight service, helps build customer trust and loyalty in the operational excellence of the airline," she added.

Flying the talk on being low-cost

Kevin Kan, chief experience officer at Break Out Consulting Asia, echoed some of these sentiments. While Jetstar Asia made a strong impression when it launched in 2004, he noted that its marketing had tapered off in recent years, potentially due to budget cuts.

“I actually liked Jetstar's visualised marketing, as opposed to the cartoon-like ones for Scoot, and the fun Virgin-esque visuals of AirAsia,” he said.

Jetstar Asia's previous "Soar for Singapore" campaign, done in collaboration with AKA Asia, was the last known campaign out of the Singapore-based budget airline to have been a hit with consumers. According to media intelligence firm Truescope, the "Soar for Singapore" song resulted in a peak in potential impressions and mentions the day after its release, achieving 108.36 million potential impressions at the time in August 2024.

The tongue in cheek song, created in partnership with Singaporean content creator, Scott Van Der Ven, celebrated the unique spirit, pride and culture of Singapore and added some humour by showcasing uniquely Singaporean traits and quirks, including an elderly woman using karate moves to be the first person at baggage claim. 

Most recently, Jetstar Asia had been active on its social accounts, with influencer engagements and social content about its flight offerings to Sri Lanka, Labuan Bajo, Broome, Colombo, Krabi and more. 

What messaging has wings?

Looking ahead, Kan said smaller LCCs such as Batik Air need to invest in marketing to stay competitive, but it must be rooted in performance. “This boils down to stronger positioning based on factual performance and service ratings,” he explained. “Regardless of what marketing efforts are taken, it will only make a difference if it is proven with factual results, such as on-time performance data.”

When it comes to the type of marketing to deploy, Kan suggested video testimonials and highlights of customer satisfaction as a means to reach audiences. Kan also noted that with one less player in the market, the need for aggressive marketing may lessen.

“LCCs could shift their focus to campaigns along the lines of ‘Everyday low travelling prices’ to help change public perceptions. Given the announcement of Jetstar Asia's cessation, travellers will become aware of the operational cost dimension.”

With rising landing fees, labour costs, maintenance expenses, and parts shortages, Kan warned that flight prices are unlikely to drop anytime soon. In that context, he said, airlines need to communicate clearly how they deliver value despite cost pressures. 

For consumers, price and reliability is going to be the most important consideration. Regardless of how much marketing you do, you are going to have to 'prove' you provide reliable and affordable travel options. 

Separately, David Lim, co-founder of Avante Strategies said that travel being an aspirational product has evolved over time. Now, airlines cannot focus solely on providing "point A to point B" transportation services while neglecting passengers' emotional reasons to fly. 

"Scoot and AirAsia have done a great job in this area with 'Escape the ordinary' and 'Now everyone can fly" respectively. Their brand positioning drives a deeper affiliation with their passengers, leading the latter to understand their 'whys' when choosing a particular LCC when price points are all too similar," Lim said.

Performance marketing has played a pivotal role in the growth of LCC. Yet, the importance of brand positioning can be observed in this competitive space over time. The ones that continue to have a strong market share and growth are those that continuously establish and re-establish their brand promises, explained Lim.

Passengers not only purchase a seat on the flight to their destination. They are looking for a reason to book that seat with a particular LCC

"This includes a more holistic experience right from the moment of booking the flight to the communication during a flight delay. All of which has to be peppered with the LCC's brand personality," he said. 

Despite the challenges, Delbert Ty believes marketing still has a meaningful role to play - but only if it’s grounded in a strong, differentiated position.

“Take ZIPAIR for instance. I have never actually seen any marketing from them, and heard about them only through word of mouth,” he said. “The reason why sharp positioning lends a helping hand to word of mouth, is because it is simply easier for someone to explain what the airline is if its positioning is sharp.”

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