Running an airline business is inevitably expensive. To cover these expenses, airlines are forced to increase their airfares. However, AirAsia has defied the norms and attempted to offer the lowest prices compared to other airlines. AirAsia has successfully positioned itself in the minds of customers as a low-cost airline and this has become one of their comparative advantages. The concept of low fares established by AirAsia not only for introductory promotional purposes but also for regular offers. AirAsia's intention in applying the low-cost concept is to capture more customers who previously could not afford the airlines' fare and gain a larger market share. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get Original Essay Furthermore, for companies operating under the cost leadership strategy, controlling cost factors is essentially important. Compared to other airlines in the industry, AirAsia operates with a no-frills approach, minimizing all non-essential features to keep the price of airfare as low as possible each time. Low price is the main key to compete in this highly competitive industry. Other than that, there are no reserved meals in AirAsia and seats were offered. Seating on flights is based on a first-come, first-served basis. However, AirAsia offers passengers the option to pre-select their seats, but passengers usually don't make the purchase because they have to pay extra. Therefore, AirAsia considers this as their strategy to attract passengers to show up at the departure gate on time and at the same time their flight can depart online. This could result in the ability to fly more routes each day and increase sales performance. In return, greater profits can be generated as a result of effective and efficient operation. AirAsia targets different customer segments using different strategies. They provide unique and distinctive features to customers willing to pay a premium price. For example, AirAsia has allowed its passengers to have additional options to customize their flight experience. Passengers can pay more for a comfortable and enlarged seat cushion, in-flight WiFi service by subscribing to the Rokki plan, an upgraded neck pillow and a blanket. However, passengers who are not interested in these premium features can continue to enjoy low fares without affecting their choice of preferences. AirAsia applies a differentiation strategy in its operations by rewarding its customers through the “Big Loyalty” program. Through this program, members can earn points for every single penny spent on their products and services. For example, passengers can earn points for spending on airfare and travelers can earn rewards on spending on accommodation bookings through the AirAsia Go program. Additionally, AirAsia also gains benefits by being the first to introduce e-booking and self-control through its website. All these strategies are capable of creating value for AirAsia customers and building their loyalty towards AirAsia. Through cost leadership strategy alone, AirAsia will be able to capture price-sensitive customers only by providing the lowest airfares compared to its competitors. But this strategy would eliminate non-essential features that might worry passengers, such as in-flight entertainment and more comfortable seats, and lead customers to.