Jetstar, Qantas Airways Ltd.’s budget airline unit, picked Singapore as its Southeast Asian hub as it considers starting long-haul flights.

 

“Sometime in the future, it’s likely that we will have long-haul aircraft here,” Chief Executive Officer Bruce Buchanan said in an interview today in the city-state. The Melbourne-based airline is also competing for a ground-handling license in Singapore, he said.

 

The move could create extra competition for Thai Airways International Pcl, Singapore Airlines and other long-haul airlines in the region. Discount carriers are expanding in Asia as economic growth enables more people to travel to Europe, and the U.S. for holidays.

 

Jetstar Asia Airways, a separate unit of Qantas, already uses Singapore as a hub for short-haul flights.

 

Separately, Buchanan said that Jetstar is helping with investigations in Vietnam. A review by the Civil Aviation Administration of Vietnam into Jetstar Pacific’s maintenance found “shortcomings” in processes at the carrier, according to translated versions of the report provided by Qantas earlier this month.

 

“We’re working with the authorities and we’re trying to support them” Buchanan said. Vietnam is a “long-term” investment for the carrier, he said.