Malaysia's AirAsia on Thursday commenced its maiden flight to Chiang Mai, becoming the first and only airline since 2001 to offer daily flights between the Malaysian capital and the northern Thai city.

"It has been four years since a direct service was introduced to connect Chiang Mai and Kuala Lumpur," AirAsia chief executive officer Tony Fernandes said in a statement.

Over 12,000 seats on the route have been sold since they were available two weeks ago, he said.

Fares for the route start from RM99.99 ringgit (RM26.50 dollars). Introductory fares start from RM49.99, he said.

Fourth Thai city

"As the regions premier low fare airline, we are committed to providing low fares so that more people can fly," said Fernandes.

Chiang Mai marks the fourth major Thai city served by AirAsia, since the airline launched routes in Bangkok, Phuket, and Hat Yai, from Kuala Lumpur International Airport.

AirAsia was launched as a budget carrier in December 2001 with just two aircraft and has since become a significant regional player, with its business model increasingly imitated by national carriers and a host of new low-cost entrants.