Air Macau will finalize plans to set up Macau's first budget airline with Shun Tak Holdings and China National Aviation, a local newspaper reported on Wednesday.

After more than a year's discussion, board members of Air Macau will meet on Friday to conclude the plan, which will involve a total investment of HKD$234 million (USD$30 million), the Apple Daily said.

Air Macau will have a controlling stake of 51 percent with Shun Tak Holdings, the Hong Kong-listed flagship of gaming magnate Stanley Ho, and CNAC sharing the remaining 49 percent. Shun Tak will take nearly 33 percent, the newspaper quoted market sources as saying.

The deal will still require approval from the Macau government but that is expected by the end of December or January, it added.

Low-cost airlines are mushrooming across Asia, putting pressure on traditional carriers to cut costs.