KUALA LUMPUR : Asia's top budget carrier AirAsia will fly direct flights to Vientiane in Laos from Kuala Lumpur from July, the airline's chief said Sunday.

"Our aim is to become an Asian airline. Without a doubt, the resumption of a direct air link after nearly a 10-year hiatus will spur economic benefits," chief executive Tony Fernandes told AFP.

"That is the beauty of a low cost carrier. We can fly to destinations which others don't," he said.

National carrier Malaysia Airlines started a direct flight between the two capitals in 1996 but the 1998 financial crisis forced the airline to cancel the service due to poor passenger demand.

Foreign Minister Syed Hamid Albar said the decision to resume the route was made on Friday at the third Malaysia-Laos joint commission meeting to boost trade, tourism and economic ties.

Bilateral trade doubled last year to 58 million dollars compared to the previous year, he said.

"Direct flights to Vientiane will fuel the movement of tourists, and spur trade and investments between the two countries," he was quoted as saying by Bernama news agency.

Fernandes said that AirAsia was also hoping to secure a direct link from Kuala Lumpur to Yangon in Myanmar in the next few months.

AirAsia was launched as a budget carrier in December 2001 with just two aircraft. It now offers more than 100 domestic and international flights throughout Southeast Asia.

- AFP/ir