ACCC gives green light for Qantas, Jetstar joint venture. Image: Bloomberg

The Australian Competition and Consumer Commission (ACCC) has approved the coordination of operations between Qantas and Jetstar in Australia, Vietnam, Singapore, Japan and Hong Kong.

Qantas requested approval for a Joint Venture Coordination Agreement (JVCA) with Jetstar in June 2012.

The idea behind the JVCA was to more closely integrate both airlines' networks, scheduling arrangements, pricing packages, customer service, ticketing options, frequent flyer programs and information technology.

“The ACCC considers that the coordination is likely to result in public benefits to consumers by increasing the likelihood of additional Jetstar flights and destinations in Asia, and providing increased online connections for consumers," ACCC chairman Rod Sims said.

The JVCA would increase the “international competitiveness of a key Australian business by seeking to capitalise on the growth in demand for air travel services in Asia for its own benefit and ultimately the benefit of Australians,” Qantas said in its statement to the ACCC.

“By adopting a single business model, the Jetstar group can achieve scale, generate efficiencies and deliver cost savings while optimising local execution.”

The JVCA also suggested airline shareholders Japan Airlines, Vietnam Airlines and China Eastern Airlines be allowed to coordinate services with their Jetstar affiliates.

Jetstar Hong Kong is currently awaiting regulatory approval from Hong Kong authorities.