- POSTED: 23 Sep 2013 19:59
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Singapore's anti-competition watchdog has given the all-clear to Qantas Airways and Jetstar Airways on their proposed Jetstar Pan-Asia Strategy.
SINGAPORE: Singapore's anti-competition watchdog has given the all-clear to Qantas Airways and Jetstar Airways on their proposed Jetstar Pan-Asia Strategy.
The clearance decision follows a submission by the airlines to the Competition Commission of Singapore (CCS) to be excluded from Section 34, Prohibition of the Competition Act.
The proposed plan by Qantas will enable the establishment of Jetstar joint ventures in several Asian jurisdictions to operate low-cost carriers (LCCs).
These budget airlines will operate under the Jetstar brand and business model.
Under the strategy, the parties involved would coordinate on network, scheduling, pricing, marketing, purchasing, customer service and resourcing decisions.
CCS said in a statement that the proposed plan "would raise competition concerns but these would be offset by net economic benefits to Singapore passengers".
Therefore, CCS has excluded the proposed plan from the Prohibition of the Competition Act.
Yena Lim, chief executive of the Competition Commission of Singapore, said: "More airlines are turning to strategic alliances in response to changes in the global economy. When reviewing such applications, CCS considers whether the proposed conduct would result in better connectivity, lower fares or increased capacity to benefit Singapore passengers. This is necessary to address any competition concerns that may arise in such cooperation agreements."