Seyed Mohammadbagher Jafari - Department of Mechanical and Manufacturing Engineering, Faculty of Engineering,University of Putra Malaysia,
Mohammadreza Vasili - Department of Mechanical and Manufacturing Engineering, Faculty of Engineering University of Putra Malaysia

Low Cost Carriers (LCC) that offers cheap cost of flying with no frill service has changed the air travel industry in other parts of the world especially in Europe and the United States. Following their success a number of airlines have emerged in Asia Pacific region to be run on similar business mode. In Malaysia, AirAsia has emerged as a successful low cost carrier cutting into the market of the country’s full service carrier Malaysia Airlines. With its ‘Now everybody can fly’ tagline, AirAsia’s has emerged as one of the leading low cost carrier in the region. In this study, the history of LCCs, the LCC business model, the current situation of LCCs and AirAsia as a successful case of LCC will be discussed. This paper attempts to look into the insights of AirAsia’s operation in general and its marketing strategy in particular and to see if their offerings will be able to sustain new competition.

Service marketing, Airline management, Low cost carrier, LCC, AirAsia