No-frills carrier AirAsia today said it is set to launch flights to Macau from Bangkok and Kuala Lumpur.

The Bangkok-Macau flights would be daily and begin on June 15, the company said in a statement.

Direct flights from Kuala Lumpur to Macau would begin by the end of June - the first direct flights to link the two cities.

Macau will be AirAsia's third international destination out of Thailand, after Singapore and Malaysia.

"We recognize the tremendous potential in Macau as a tourist centre," said chief executive officer Tony Fernandes.

"We are confident that our low fares will boost tourism and bring a brand new travel experience to the people of Macau and the neighbouring region."

Competition in the region for low-cost flights is set to heat up later this year after Australia's Qantas said it would join the Singapore government in a budget airline to begin operations by year-end.

ValuAir, a low-fare carrier set up by a former Singapore Airlines executive, is due to take flight next month. - AFP