No-frills AirAsia will start flying regionally by January 2004 as its two-phase expansion plan broadens its network through joint ventures with airlines in Indonesia and Thailand, a report said today.

In the process, AirAsia plans to buy up to eight additional aircraft to service its new regional routes, AirAsia chairman Pahamin Rajab was quoted as saying by the New Straits Times .

"Our immediate plan will be to fly between domestic hubs such as Kota Kinabalu, Senai and Penang. o­nce we obtain the government's approval to fly from these hubs, we will proceed to the second phase of our expansion," he said.