September 1, 2013
The Competition Commission of Singapore (CCS) has cleared the establishment of the Jetstar Pan-Asia Strategy (the "Strategy") by Qantas Airways Ltd (Qantas) and Jetstar Airways Pty Ltd (Jetstar). This was a result of Qantas and Jetstar's notification to the CCS for clearance of the Strategy, which includes Qantas and Jetstar establishing joint ventures in several Asian jurisdictions thereby allowing them to coordinate networks, scheduling, pricing and resourcing decisions.
The clearance was given by CCS despite finding that parts of the Strategy raise competition concerns. The CCS chose instead to emphasize that the presence of low cost carriers can increase the level of competitiveness through increased capacity and lower prices. Based on this, the CCS took the view that the Strategy in its entirety had economic benefits which outweighed competition law restrictions. As a result the alliance between Qantas and Jetstar is excluded from section 34 of the Competition Act, Chapter 50B of Singapore.