Hong Kong-based airline Dragonair said on Thursday it would cancel its services between Hong Kong and Bangkok, effective September 27.

"Hong Kong-Bangkok is a very busy, competitive route, and it has not been performing to expectations for some time," CEO Kenny Tang said in a statement. "That is why we have taken the decision to cancel the service."

Dragonair launched the services to Bangkok in November 2003. An airline spokesman said Dragonair had no plans to change its other services in the Asia Pacific region.

Cathay Pacific Airways had said in June that it would pay USD$1.05 billion in cash and shares to take over smaller rival Dragonair.