Thai Airways has effectively severed ties with Tiger Airways after confirming it would not renew its alliance with the carrier.
Singapore-based Tiger was grounded for several weeks earlier this year following concerns over safety.
Thai Airways is instead expected to concentrate on its own recently announced low-cost carrier, Thai Smile.
Thai Airways chairman Ampon Kittiampon told reporters: “We will not extend our contract which will expire next month because we now have Thai Smile.”
In 2010, Thai Airways signed a memorandum of understanding to form the alliance with Tiger Airways to operate a new budget carrier, Thai Tiger.
However, the plan was delayed pending approval from the transport ministry.
Thai Smile is expected to launch next year.