Thai Airways has confirmed it will launch a new low-cost carrier as it seeks to boost market share in Asia.

The Thai flag-carrier revealed Thai Smile will launch in 2012.

Earlier this week Qantas said it too would launch a new low-cost carrier, based in Japan, as it seeks to boost its offering to a growing class in the region.

Thai Airways chairman, Ampon Kittiampon, explained the carrier is part of Thai Airways’ expansion plan.

The plan comes as the airlines seeks to turn itself around after years of losing market share in a region where swelling middle classes, fast economic growth and liberalised air policies provide opportunities for higher earnings.