There could be some LCC consolidation in the works in the Thailand market.
Asia Aviation, the majority owner of Thai AirAsia is considering whether to buy a stake in rival Thai carrier Nok Airlines.
Asia Aviation responded following media speculation of talks taking place.
"The company is currently considering whether such investment is appropriate," the company’s chief financial officer Santhat Sanguandikul said.
Nok is remaining tight lipped.
It was ‘not aware of any details in this respect’ it claimed.
It is unclear what percentage shareholding has been discussed, if any.
It comes just weeks after Thai Airways reduced its stockholding in Nok by about a third.
Neither airline is currently making a profit due to intense competition so joining forces in some capacity will likely see an improvement in yields.
Asia Aviation owns 55% of Thai AirAsia with the Malaysia based AirAsia Group holding the remainder.
