SINGAPORE: Australia's Qantas Airways said its Singapore-based budget carrier Jetstar Asia will start operating from the city-state by the end of the year.

Jetstar Asia chief operating officer Con Korfiatis said the carriers's initial fleet of Airbus A320 aircraft would begin arriving here next month.

He said the Jetstar Asia fleet would comprise four A320s by January, and would increase to more than 20 aircraft over the next three years.

Qantas will take a 49.9% stake in the new intra-Asian budget airline, while Singaporean businessmen Tony Chew and F.F. Wong will hold 21.1% and 10% respectively. Temasek Holdings, the investment arm of the Singapore government, will own the balance 19%.

The low-cost carrier will have an initial investment of about S$100mil, of which S$50mil will come from Qantas and the rest from the other three investors.

Jetstar Asia will serve tourist and business destinations within five hours' flying time from Singapore.

“We believe we can put together a good route structure among all available routes out of Singapore,” Korfiati said, declining to name specific destinations.

With the addition of Jetstar Asia, local travellers will now have a choice of four budget carriers, the others being Singapore-based Valuair and Tiger Airways and Malaysia's AirAsia.

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