Tiger Airways, Singapore's latest low-cost airline, has introduced rock bottom promotional fares by launching commercial services from Singapore to Bangkok from Wednesday at a round-trip fare of only 2 Singapore dollars (US $1.16).

It is the lowest fare of any carrier in the region. The S$2 return tickets will be available for the first week starting September 15. The rates have taken other no-frills airlines by surprise.

Tiger Airways will fly to Bangkok from September 15 three times daily; then to Hat Yai from September 22 and to Phuket from September 29 once a day for S$2.

One-third of the seats on Tiger Airways' flights will be available for S$2during the first week; while fares for the rest of the seats will cost between S$14 and S$48.

Despite this, Tiger's fares seem to be the lowest on offer. Valuair, Tiger's rival, offers fares to Bangkok ranging from S$138 to S$230. Tickets to Phuket cost between S$138 and S$371 on SilkAir, and cost between S$159 and S$458 to Hat Yai on Thai Airways.

Tiger Airways is the low-cost airline arm of Singapore Airlines.