Jetstar clears hurdle in Singapore

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http://www.smh.com.au/business/aviation/jetstar-clears-hurdle-in-singapore-20130924-2uaxf.html

Jetstar’s aspirations to expand in Asia have received a boost after Singapore’s competition watchdog cleared the way for the budget airline’s affiliates to coordinate passenger and cargo services with Qantas.

The Competition Commission of Singapore found that ‘‘some parts’’ of the plans to coordinate services would raise competition concerns but it pointed out that they would be offset by economic benefits to passengers.

The watchdog also emphasised that the presence of budget airlines on routes could ‘‘generally increase the level of competitiveness through increased capacity and reduced prices from existing airlines’’.

With Qantas also stepping up its focus on Asia, the regulatory clearance will allow it to better co-ordinate flights from Australia with connecting services in Asia by Jetstar affiliates.

The decision comes seven months after the Australian regulator allowed Qantas and Jetstar to co-ordinate with the budget airline’s joint venture operations in Singapore, Vietnam, Japan and Hong Kong for the next five years.

The clearance in Singapore also comes as Jetstar awaits a decision from aviation regulators in Hong Kong about whether they will approve its plans to launch operations from the Chinese territory.

However, the new airline faces stiff opposition from Cathay Pacific, its offshoot Dragonair, and Chinese-backed Hong Kong Airlines.