SICC Approves Scheme of Arrangement for Jetstar Asia Customers

The Singapore International Commercial Court (SICC) has sanctioned a scheme of arrangement for Jetstar Asia Airways Pte Ltd, enabling almost 194,000 consumer creditors to recover claims arising from unused tickets, bookings, and vouchers. The decision provides a framework for resolving outstanding customer entitlements.

The scheme follows the airline's decision to permanently cease operations. Supported by its parent, Qantas Group, Jetstar Asia had initiated a refund program for eligible retail customers. However, low uptake of this program led to the development of a formal court-supervised arrangement.

This court-approved plan ensures full recovery for all approved claims from both consumer and non-consumer creditors. A key feature was the creation of an administrative convenience class for the 194,200 consumer creditors. These individuals were not required to vote on the scheme but were deemed to have unanimously approved its terms in exchange for full repayment.

This approach avoided a potentially lengthy and resource-intensive voting process among a large number of individual creditors. The court found that this method offered significant administrative benefits without causing undue prejudice. Pacific Airlines, initially an objector, withdrew its opposition following a settlement.

The SICC determined that relevant sections of the Companies Act provide judicial latitude in satisfying voting requirements, supporting the creation of such administrative classes. The court concluded that the scheme did not adversely affect creditors, as all were entitled to full repayment, and administrative efficiency was achieved.