Jetstar Asia shutdown: Income Insurance extends ‘goodwill’ coverage outside of ticket expenses

Income Insurance said on Thursday (Jun 12) that it will offer coverage to eligible customers affected by Jetstar Asia’s upcoming shutdown, even though such events are not typically included in travel insurance coverage.

On Wednesday, Jetstar Asia, a wholly owned subsidiary of Qantas Group, announced it would cease operations in Singapore by Jul 31.

The budget carrier cited escalating operational costs and mounting competition as key drivers for the decision.

The carrier is expected to post an underlying earnings before interest and taxes loss of A$35 million (S$29.3 million) in the current financial year.

Once the airline’s operations have ceased, its 13 Airbus A320 aircraft will be redeployed across the Qantas Group to support fleet renewal and growth in its Australia and New Zealand businesses, in line with underlying demand, Jetstar Asia said.

Customers whose bookings have been impacted by the carrier’s exit will be contacted directly, and will be offered the option of a full cash refund or an alternative flight where possible, it said.

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Income Insurance “extends goodwill cover”

Income said Jetstar Asia’s closure does not fall within its travel insurance’s insured events for trip cancellations which include natural disasters, riots, airport closure due to poor weather conditions, family bereavement, among others.

However, “as part of (a gesture of) goodwill”, affected eligible customers who have purchased Income travel insurance with pre-trip cancellation cover will be able to claim for unused and prepaid expenses. These include costs related to accommodation, travel packages, local tours, amusement park tickets and transport (outside of Jetstar air ticket expenses), including land transfers. It applies to eligible single-trip and annual travel insurance plans purchased prior to Wednesday, 8 am.

A full refund, within the stipulated policy limit, will be given if and when affected eligible customers fail to obtain a refund from their accommodation, transport or service providers, as stipulated in the travel insurance policy terms and conditions.

Dhiren Amin, Income Insurance’s chief customer officer, said: “We recognise the stress and anxiety that our customers are experiencing due to the impact of this sudden news and we want to stand by our customers in extending the necessary support as they navigate the situation.”

Jetstar Asia said all flights in and out of Australia with JQ flight codes remain unchanged, just as Jetstar Japan flights in Asia with GK codes. Customers who have booked flights for travel after Jetstar Asia’s closure on Jul 31 will be contacted directly with an option for a full cash refund.

The Consumers Association of Singapore (Case) is working with Jetstar Asia to clarify refund procedures and recourse options in cases of dispute.

In a Facebook post on Wednesday, Case president Melvin Yong assured consumers that the organisation is working with Jetstar Asia to clarify how it intends to handle and process these refunds and rescheduled flights.

Should there be a dispute, consumers who require assistance can contact Case’s hotline (6277 5100) or visit their website at www.case.org.sg.