Thai Airways and Tiger Airways have announced plans to launch a new low-cost carrier, which is due to start operating during the first quarter of 2011.

Thai Tiger Airways is set to offer flights on short-haul routes within a five-hour flying radius from Thailand's Suvarnabhumi International Airport - further details of which are due to be announced. Thailand's flag carrier and the Singapore-based airline have secured a Memorandum of Understanding to form the new venture, which will see Thai Airways own a majority 51 per cent stake.

Tony Davis, group president and chief executive officer at Tiger Airways, said: "Thai Tiger will be well positioned to offer low fares to even more parts of the Asia-Pacific region from its base in Asia's tourism leader, Thailand. "Bangkok is a key gateway to the whole of South East Asia and from its base at Suvarnabhumi Airport, Thai Tiger will be well positioned to also serve destinations in North Asia and the Indian sub-continent."

Thai Airways president Piyasvasti Amranand added: "For people in Thailand and the region, our launching Thai Tiger will mean that in addition to the global network of premium services operated by THAI, more people will have access to new low fare, point to point services, giving a big boost to tourism and employment."