Nok Air and Scoot to set up new budget airline in Bangkok 16 December 2013 Last updated at 03:09 Thailand's Nok Air and Singapore's Scoot plan to set up a new budget carrier in Bangkok amid growing demand for low-cost travel in the region. The airline, if approved by regulators, will be called NokScoot and operate on medium and long-haul routes. Both companies will make an initial joint investment of S$80m ($64m, £39m) Nok Air, which is Thailand's second-largest budget carrier, will own up to 51% of the venture. Nok Air Chief Executive Officer Patee Sarasin said they were "excited" at expanding overseas. 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," he said. Scoot Chief Executive Officer Campbell Wilson added: "Thailand is Asia's premier tourist destination and logical hub for Scoot to expand to." Budget rival Rival budget carrier Tiger Airways also announced plans on Monday to form a new low-cost airline, this time 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. Shares in Singapore-listed Tiger Airways rose by about 3%, bucking an overall drop in the broader market.