AirAsia is to offer daily services between Bangkok and the southeastern Chinese city of Xiamen, becoming the first no-frills foreign airline to fly to China, a top official said today.

"It is scheduled to start next month," Tony Fernandes, AirAsia's chief executive told AFP .

"China is a big market. We are excited. It has a lot of potential," he added.

Last month Fernandes said the carrier had secured regulatory approval from China to launch air services to five destinations from Bangkok in neighbouring Thailand by early May.

Fernandes said a number of other airports in China had approached AirAsia, adding: "We have quite a number of choices to make for now."

Earlier in Beijing, the China Business News reported, citing sources that the airline would price its maiden round-trip flight at just 299 yuan, less than one sixth the rate offered by local carrier Xiamen Airlines, the newspaper said.

Once the promotion period is over, a regular round-trip farewould be 1,000 yuan (US$120).

Significant player

An official at Xiamen Airlines said he expected AirAsia to entice some leisure passengers away, which currently account for some 30 percent of its clientele, but the full extent of the impact remains to be seen.

It is believed that two other Asian low cost airlines - Jetstar Asia and Valuair, both Singapore-based - are also seeking Chinese government approval to fly from the city state to major mainland cities.

AirAsia last month said it earnings rose sharply in the three months to December and announced that it would buy an additional 20 new Airbus aircraft - raising a previous order to 100.

Launched as a budget carrier in December 2001 with just two aircraft, AirAsia has defied the sceptics to become a significant player in the region.