AirAsia's business model is Low Cost Carrier (LCC) that showed as above. There are 3 attributes that contribute to LCC business model, which are simple product, positioning, and low operating cost.
Simple Product attribute for AirAsia Company is referring to the plane seating that is narrow and with only one class. So that, there is no seat assignment offered. Catering is not included on the bills unless there is special demand extra payment must be made. As it is simple product, so frequent flyer programmes is omitted.
Positioning attribute is mean about targeting on special target market or on certain activities that helps the company to grow. AirAsia is targeting on non-business passengers, especially leisure traffic and price-conscious business passengers. In order to reduce the maintenance cost for plane per day per trip, short-haul point to point traffic with high frequencies is applied. Aggressive marketing is conducted on its own website and also on newsletter to stimulate the market to increase revenue. AirAsia is locating on secondary airports as it helps to reduce the cost, and also this is the way AirAsia to compete with all transport carriers.