Southeast Asia's leading low-cost carrier AirAsia today said it is in the final stages of securing approval to launch a service to Brunei.

"We are definitely keen to start service to Brunei. We are presently in the final stages of discussion and are waiting to get the necessary approvals," chief executive Tony Fernandes told AFP .

AirAsia is Southeast Asia's biggest low-cost carrier and derives much of its business within Malaysia. It also operates in Thailand, Indonesia, the Philippines and China.

The Malaysia-based airline has said it is on the lookout for opportunities for expansion within the region, including access to lucrative routes to Hong Kong and Singapore.

Brunei is currently served by national carrier Royal Brunei Airlines, Singapore Airlines, Thai Airways, Garuda Indonesia, Philippines Airlines and Malaysia Airlines.

Asia's low-cost airline industry is now entering a period of consolidation, with carriers expected to merge or close down in the face of high oil prices, government restrictions and intense competition.

The process has already begun in Singapore, where Jetstar Asia and Valuair last week announced they were joining forces.