Pan-Asia proposal approved

The Competition Commission of Singapore (CCS) has cleared Qantas and Jetstar’s proposed Pan-Asia strategy, enabling low-cost carrier joint ventures in several Asian jurisdictions.

The budget airlines will operate under the Jetstar brand and business model, coordinating on network, scheduling, marketing, pricing, customer service, resources and more, Channel News Asia reported.

Although the CCS is aware the proposed plan is projected to raise competition concerns, these would be offset by net economic benefits to Singaporean passengers.

“More airlines are turning to strategic alliances in response to changes in the global economy,” CCS chief executive Yena Lim said.

“When reviewing such applications, CCS considers whether the proposed conduct would result in better connectivity, lower fares or increased capacity to benefit Singapore passengers.”

Sourced: etravelblockboardasia