(Reuters) -Australian flag carrier Qantas said on Wednesday it will close Jetstar Asia, the group's Singapore-based low-cost unit, in a bid to recycle up to A$500 million ($326.40 million)as part of its fleet renewal plans.

Australia’s Qantas Airways will close its Singapore-based budget carrier at the end of next month, due to intense regional competition and a threefold increase in supplier costs.