Malaysian budget carrier AirAsia said Tuesday it hopes to begin daily flights to Macau from Bangkok and Kuala Lumpur as part of its expansion plans ahead of increasing competition later this year.

"We have finalised some of the issues (with Macau authorities)," the airline's executive director, Kamarudin Meranum, told AFP.

Kamarudin said the exact timing for the launch of the new services depended on its aircraft capacity, but June was a possible starting date for the Bangkok-Macau route.

"After Bangkok-Macau, AirAsia will fly out of Kuala Lumpur to Macau," he said.

Competition heats up

AirAsia already flies to Thailand, Singapore and Indonesia.

Competition in the region for low-cost flights is set to heat up later this year after Australia's Qantas announced last week 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.

AirAsia is waiting for a license to fly from Singapore. - AFP