Singapore's competition watchdog has no issues with Jetstar carriers working closely to plan flight schedules for example.

While cooperation between the airlines including Singapore's Jetstar Asia may raise some competition concerns, "these would be offset by net economic benefits to Singapore passengers" said the Competition Commission of Singapore in a statement on Monday.

The presence of low-cost carriers on routes can generally increase the level of competitiveness through increased capacity and reduced prices from existing airlines, it said. The Jetstar group of carriers which come under the umbrella of Australia's Qantas are an important part of Qantas' strategy to expand its Asian business.

The different carriers have been working closely for some years now. While the arrangement does not require approval from Singapore's competition watchdog, Qantas which recently submitted an application to keep the commission informed and ensure no rules were being flouted.