Jetstar clears hurdle in Singapore Jetstar's aspirations to expand in Asia have received a boost after Singapore's competition watchdog cleared the way for the budget airline's affiliates to coordinate passenger and cargo services with Qantas. With Qantas also stepping up its focus on Asia, the regulatory clearance will allow it to better co-ordinate flights from Australia with connecting services in Asia by Jetstar affiliates. The decision comes seven months after the Australian regulator allowed Qantas and Jetstar to co-ordinate with the budget airline's joint venture operations in Singapore, Vietnam, Japan and Hong Kong for the next five years. The Australian Competition and Consumer Commission said in March that the better co-ordination of passenger and cargo services posed ""little, if any, detriment"" because the airlines faced stiff competition from other carriers on the mostly intra-Asian routes they flew. The clearance in Singapore also comes as Jetstar awaits a decision from aviation regulators in Hong Kong about whether they will approve its plans to launch operations from the Chinese territory. However, the new airline faces stiff opposition from Cathay Pacific, its offshoot Dragonair, and Chinese-backed Hong Kong Airlines. Jetstar Hong Kong is a joint venture between Qantas, Shanghai-based China Eastern Airlines and more recently Shun Tak Holdings, the listed conglomerate founded by Macau gambling billionaire Stanley Ho. Airline profits this year are expected to be $US1 billion ($1.06 billion) less than was forecast in June due to higher oil prices and weaker growth in several key emerging markets. However, the International Air Transport Association pointed out that its revised forecast for the combined profit of the world's airlines of $US12.7 billion was still considerably higher than the $US7.4 billion net profit in 2012. ""Overall, the story is largely positive. Profitability continues on an improving trajectory. But we have run into a few speed bumps,"" IATA's Director General and CEO, Tony Tyler, said. ""Cargo growth has not materialised. Emerging markets have slowed. And the oil price spike has had a dampening effect."" The peak industry body has also downgraded its outlook for airline profits in the Asia-Pacific region by $US1.5 billion to $US3.1 billion due to slower growth in emerging economies. However, IATA expects a boost in airline earnings worldwide next year with combined profits of $US16.4 billion due to the likelihood of weaker oil prices and rising business and consumer confidence levels. ""2014 is shaping up to see profit more than double compared to 2012," Mr Tyler said.