Budget airline AirAsia hopes to launch flights to Indonesia by the end of the year and to Thailand from January in an effort to boost revenue, officials said today.

AirAsia executive director Kamarudin Meranun told AFP that Indonesia's islands of Sumatra and Java were ideal destinations for the carrier.

"We are doing the due diligence exercise. We are identifying the best destinations in Indonesia and Thailand which offer favourable costs and airports where our 737-300 aicraft can land," he said.