Jetstar, Qantas Airways Ltd.’s budget airline unit, will start long-haul services from Singapore this year as air travel demand surges in the Asia-Pacific region.

Destinations may include Australia, North Asia and European cities with the carrier using wide-bodied Airbus SAS A330-200 aircraft, Jetstar said in an e-mailed statement today. The company will add about 200 jobs to support the move.

 

The move could create extra competition for Thai Airways International Pcl, Singapore Airlines Ltd. and other long-haul airlines in the Asia-Pacific region, which last year overtook intra-North American travel as the world’s largest aviation market. Budget airlines are expanding in Asia as economic growth enables more people to travel for holidays.