Plans for a new Asian budget airline have emerged involving Thailand’s Nok Air and Singapore’s Scoot.

If approved by regulators, the Thai-based start-up will be called NokScoot and operate on medium and long-haul routes.

Both companies will make an initial joint investment of S$80 million (£39 million), the BBC reported.

Nok Air, Thailand’s second-largest budget carrier, will own up to 51% of the new venture.

Chief executive Patee Sarasin said: “It has always been Nok’s goal to offer Thais more choice and more value, of which this venture is yet another example. We’re also excited at the opportunity to encourage more inbound tourists, to boost the Thai economy.”

Scoot chief executive Campbell Wilson added: “Thailand is Asia’s premier tourist destination and logical hub for Scoot to expand to.”

Rival budget carrier Tiger Airways also announced plans on Monday to form a new low-cost airline in Taiwan.

It plans to set up Tigerair Taiwan through a joint venture with China Airlines, Taiwan’s biggest carrier.

Tigerair said it would hold a 10% stake in the new company, which is aimed at tapping the budget-conscious travel market in North Asia.

Tiger Airways, which is majority-owned by Singapore Airlines, also announced an agreement to enhance connectivity between flights with India’s Spicejet, and to form a partnership with Scoot.