Thai Airways has scrapped its plan to launch an ultra-low cost carrier, according to a report in The Nation.

The newspaper quotes a report by the Centre for Asia-Pacific Aviation (CAPA) that the airline had scrapped the plan after a feasibility study on international expansion.

The airline had been looking at a possible joint venture with Nok Air in which Thai Air has a 49 percent stake. However the report suggested that Nok Air is to go ahead with its own lost cost carrier plan.