Budget carrier AirAsia is planning to start a low-cost airline in Singapore with the possible participation of a local partner, the Business Times reported Tuesday.

AirAsia's chief executive, Tony Fernandes, told the newspaper the Singapore plan was still at "an embryonic stage" and would be similar to the Thai joint venture the Malaysia carrier inked recently with Shin Corp, a firm controlled by Thai Prime Minister Thaksin Shinawatra's family.

The Malaysian budget carrier's bid to launch direct flights between the city-state and Kuala Lumpur has hit several snags including Changi airport's refusal to lower its landing charges for AirAsia.

Passengers from Singapore who want to fly to the Malaysian capital on AirAsia have to travel to Senai airport in Malaysia's southern Johor state.

A bus trip to Senai from Singapore's central business district takes about an hour and costs about two Singapore dollars (RM4.20).

AirAsia has successfully brought low-cost flights to intra-Malaysian travel despite initial forecasts of gloom by aviation analysts and it is now embarking on a program to spread its wings regionally. - AFP