Nok Air and Scoot have signed a MoU to establish a new low-cost airline to be based in Bangkok.

The new airline will be named NokScoot and will be based at Don Mueang International Airport. It will operate widebody aircraft on medium and long-haul international routes.

Thailand's Nok will have a stake of up to 51 per cent and Singapore's no-frills airline Scoot will have 49 per cent. The initial investment will be THB2 billion (S$78 million). The new airline set up is still subject to regulatory approvals.

"We are excited at the prospect of expanding Nok's presence overseas, and to be doing so with the assistance of Scoot. 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," said Nok Air CEO, Patee Sarasin.

Scoot CEO, Campbell Wilson: "Thailand is Asia's premier tourist destination and logical hub for Scoot to expand to. We at Scoot are very pleased to be working with Nok, an established and respected Thai low-cost airline, on the establishment of NokScoot. In supporting Nok with Scoot's experience in medium-haul widebody operations, we look forward to developing a new market segment and offering Thai consumers and travellers to Thailand more travel options."