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Thai AirAsia plans to make Chiang Mai and Phuket a combined regional hub next year, to boost domestic and international tourism.

It will also centralise its regional call operations in Kuala Lumpur.

The hub plan is scheduled for the second half of next year, when the budget airline will operate its first intra-domestic route, from Chiang Mai to Phuket. It will also link the two provinces with local and international destinations such as Chiang Mai-Singapore, Phuket-Udon Thani, Phuket-Ayutthaya and Phuket-Singapore.

CEO Tassapon Bijleveld said the move would boost the airline's passenger movements, both local and international.

Thai AirAsia and the Tourism Authority of Thailand are teaming up to promote across-region tourism by offering packages to residents and tourists in neighbouring countries.

Tassapon said the company also planned to operate two international routes next January with daily flights: Bangkok-Bali and Bangkok-Guangzhou.

From this week, the airline has been operating daily Bangkok-Hong Kong and Bangkok-Nakhon Si Thammarat flights. It will increase operations between Bangkok and Udon Thani from one flight a day to three.

"By the end of the year, the airline will take delivery of two Airbus A302 aircraft and another three A320s in 2009, so that we can add to our capacity and expand the network," said Tassapon.

To improve passenger confidence, the airline is promoting its guaranteed on-time schedule, introduced in response to an earlier Aviation Department proposal. If a flight is delayed for more than two hours, all passengers will get free drinks and other items, as well as the right to change to another plane or take land transport.

If the flight is cancelled, passengers can take an alternative airline or a car to their destination, with cash compensation of Bt1,200 per person and an AirAsia ticket voucher worth Bt1,800. The measure will be effective from next Saturday.

Tassapon said the AirAsia Group planned to centralise all of its call operations in the region in Kuala Lumpur by December. The centre will be operated by Sci Com, an out-source calling firm. All calls from around the world will be transferred automatically to this Malaysian centre for reservations and other services.

Tassapon said this relocation would cut its call-centre operating costs in half. The call centre's staff of 120 will serve passengers in many languages, including Thai, English, Malaysian, Indonesian and Chinese. More languages are planned, such as Vietnamese, Hindi and Egyptian.