'We have ruled out direct flights to Hong Kong because I have not seen a lot of interest from the Airport Authority,' Mr Fernandes said.

'Our talks with them never got off the ground. They took the point of view of a monopoly and were not willing to adjust. Their attitude was: 'Fly here if you want to'. They apparently don't feel the need to go out and get business. At the end of the day, Macau was just hungrier.'

AirAsia will also by the end of June become the first airline to offer a direct service between Kuala Lumpur and Macau for M$99 (HK$203) one way.

About 65,000 passengers flew between Kuala Lumpur and Chek Lap Kok last month.

Louis Liu, the authority's senior manager, media relations, said Chek Lap Kok remained an attractive option for 'low-fare' operators, such as Orient Thai and Cebu Pacific, which called at the airport.

He said the authority was mindful of the need for continuous growth to sustain its position as one of the world's leading airports and that Chek Lap Kok offered benefits other than lower costs which could make an airline more competitive.

'Low-fare airlines operate routes of relatively shorter distances with a demand for quick turnaround time,' he said in a statement. 'As one of the most efficient airports in the region, HKIA is fully capable of supporting the operational needs of low-fare airlines and [adding] value to their businesses. We believe charges at HKIA reflect good value for money in a competitive marketplace.'

The airport serves four low-fare airlines, but only Singapore's 'some frills' carrier Valuair has opted for Hong Kong among the budget brigade, a fact that has not escaped Mr Fernandes.

'I really don't understand the psyche of the [Airport Authority]. Airports have to rethink their business models,' he said. 'If every hotel was [a five star] you would never grow the market.'

If the value of having Southeast Asia's biggest discount carrier calling in Hong Kong was lost on the authority, Mr Fernandes' intent to market Macau as the primary destination for Thai and Malaysian travellers should rattle a few windows at Government House, according to one analyst.

AirAsia has arranged one customs clearance point for inbound and outbound travellers through Macau. People leaving from Hong Kong, for example, will only have to clear customs at the Macau Ferry Terminal in Sheung Wan. On arrival in Macau, they will be put on a bus from the ferry terminal to the airport for their flight.

The same arrangement has been made for incoming passengers, meaning low-cost traveller demand for the cheaper hotels, shopping malls, tailors and restaurants in Zhuhai and Shenzhen will be met with greater ease.

AirAsia is working on a package deal with a subsidiary of Shun Tak Holdings, operators of the TurboJet ferry service, to transport passengers on AirAsia flights.

'Right now taking a ferry to Macau is about as expensive as taking the train to Chek Lap Kok. We will make it cheaper,' Mr Fernandes said.

According to John Chan Wai-leong, executive director of Macau airport's management company, it won AirAsia's business because the firm adjusted to the requirements of budget carriers.

It scrapped the landing and parking fees - traditional methods of extracting revenue from airlines - in favour of a 'long-term contract based on a passenger volume commitment', he said.

Just fewer than 200,000 passengers flew between Chek Lap Kok and Bangkok last month.

'They're only going to be on the ground at Macau for 25 minutes [before returning to the air], so how can I charge them in the same way that I would charge a [premium carrier]?' Mr Chan said.

Mr Fernandes, who estimated AirAsia would need to fill just 52 per cent of the seats to break even on the Macau-Bangkok route, said he had proposed the same kind of fee payment structure to the Hong Kong authority but 'there was just no interest'.

Patee Sarasin, chief executive of the Thai budget start-up Nok Air, said his airline had also talked to Macau but had yet to meet with the Airport Authority.

'Macau is an attractive market,' said Mr Patee, whose airline has targeted a June 1 launch for Thai domestic services and one year for the launch of international flights. 'In the future, it will be the Las Vegas of Asia. It is somewhere we will have to take a long look at.'

Mr Patee said costs would continue to be the single biggest factor in choosing which airport to fly to.

Budget airlines with more working capital - such as Valuair - may choose Chek Lap Kok as their south China launch pad, but they also may face price wars with the incumbents.

Valuair, which will have raised at least US$40 million before next week's launch of its services to Bangkok and Hong Kong, will on Saturday begin selling a S$300 (HK$1,380) return-trip ticket to the Lion City.

Last week, however, both Cathay Pacific and Singapore Airlines sold the same voyage for HK$990.

'Valuair has chosen Hong Kong,' Mr Fernandes said. 'But we believe the right option is the cheaper airport.'