The price war among Southeast Asian budget carriers escalated Wednesday when Thai Air Asia offered a one-way ticket from Singapore to Bangkok for only 29 US cents.

It was the first response from the Bangkok-based carrier after Singaporean rival Tiger Airways announced last week a 59-cent promotional fare for a one-way ticket to three Thai destinations including Bangkok.

Thai Air Asia's cut rates, which exclude taxes, will be offered for 5,000 seats during a one-month promotional period from September 15, the same day Tiger Airways will

launch its services.

Thai AirAsia is a venture between Malaysia's Air Asia and Thai telecommunication giant Shin Corp.

"Thai AirAsia is going to paint Singapore and Bangkok red this month," it said in a statement, referring to the airline's corporate colour theme.

Thai Air Asia's 29-cent fares are only available online from the company website from Thursday, and reservations must be made five days in advance before the day of departure.

The price war began last week when Tiger Airways claimed to have recorded more than seven million hits on its website for its 59-cent offer for

over 3,000 tickets to three Thai destinations -- Bangkok, Phuket and Hatyai.

Tiger Airways and the Air Asia group are also competing with Singapore-based carrier Valuair in the Southeast Asian market.

One more Singapore-based budget carrier, backed by Australia's Qantas and still not commercially branded, is set to launch services within the year.

SilkAir, the regional wing of Singapore Airlines, meanwhile also joined the growing price war on Thai routes by offering more than 900 return tickets to the popular resort island of Phuket for about 52 dollars excluding taxes.