Economical carrier Jetstar is making Singapore as its main hub to increase its business. Yesterday, Jetstar, the budget subsidiary of Qantas Airways (ASX: QAN) has launched its second long-haul service from Singapore. The first service started during the month of December last year. It was a daily service to Melbourne, Australia.

Recently Jetstar Airways has taken its further step to launch its base in Asia. It has released its first flight which will fly from Singapore to Auckland. But this move of Jetstar has been disapproved by the Australian and International Pilots Association. They were not in favor of an Australian registered aircraft in Singapore.

Recently Qantas has reported a total profit of $239 million for the half year ended 31 December 2010. The chief executive of Jetstar, Bruce Buchanan has told that an aviation lunch of the airlines had been employed for Asian operations. This was done so as to compete in the region.

Mr Buchanan has clearly stated that it is not possible to sell a ticket from Ho Chi Minh to Hanoi and have an Australian cost base. By doing so, they would be not able to compete effectively with local players in that market.