The Internet plays a vital part in the Air Asia business and has proved to be critical to the success of the business. As a low cost operation, controlling the cost of doing business is clearly highly important to the airlines‟ ability to be competitive by offering low fares. The Internet provides the most cost effective distribution channel available. AirAsia‟s promotions are very well received by the consumer for example its “Free Seat Promotion” and “Mega Sale Promotion”. In order for AirAsia to maintain its profitability and ensure its stays in line with cost leadership business model, AirAsia has to offer more routes and products in its portfolio. Association of Asia Pacific Airlines stated that demand for air travel is projected to grow 5% annually, with the Asia Pacific region expanding at an even faster pace of 6% per annum over the next twenty years (AAPA, 2011). More routes and fleets mean more customers and potential ancillary income, in 2010 ancillary income per guest is RM 44 (AirAsia 2010). Air Asia should also strongly focus on its offering via web booking as 77% of its revenue derives via internet. To further proof this, during AirAsia‟s Mind Blowing Fare, 538,000 tickets we’re
sold in 24 hours and a record setting 36,871ticket per hour. (AirAsia 2010)