Thai AirAsia, a subsidiary of Malaysia-based budget carrier AirAsia, plans to open direct flights between Hanoi and Kuala Lumpur later this year, a company official said today.

"We plan to conduct one flight a day between Hanoi and Kuala Lumpur, starting this October," a spokeswoman for the airline told AFP .

Thai AirAsia, which entered the Vietnam market in 2005, currently flies twice a day between Hanoi and Bangkok.

Singapore-based Tiger Airways became the first budget airline operating flights to Vietnam in April last year.

The Vietnamese market is now shared by more than 20 international airlines and two domestic carriers.