SINGAPORE - Budget carriers Tigerair and Scoot have received approval from Singapore's competition watchdog to work closely to plan flights, schedules and fares.

This paves the way for the airlines to offer customers better service, the carriers said on Friday.

On routes operated by both, flights can be better spread out and travellers can also expect more convenient connections through Changi Airport.

Scoot's customers from China for instance, will be able to enjoy fuss-free connections onto Tigerair's flights to South-east Asian destinations.

Tigerair, which is about 40 per cent owned by Singapore Airlines (SIA), operates short-haul flights while Scoot, a wholly-owned SIA subsidiary, operates in the long-haul sector.

Mr Lee Lik Hsin, Tigerair's group chief executive officer, said: "Besides allowing us to further strengthen our alliance with Scoot, this development will also empower both Scoot and ourselves to deliver even greater flexibility and value to our customers through the coordination of schedules and routes."

Scoot's chief executive officer Campbell Wilson said the approval by the authority is recognition of the value that closer ties between the two carriers can bring to the residents, hub and economy of Singapore.

The approval from the Competition Commission of Singapore (CCS) follows a thorough review by the authority which included a public consultation.