moderately high due to almost no switching cost for customers to switch from
one LCC to another. In addition, the access to the internet allows customers to
have close to full information on prices charged by the LCCs. Threat of
substitutes is moderately low; there are several substitutes such as cruises, rail,
bus, and car. However, the archipelago geographical structure of Asia has made
air travel the viable, efficient, and convenient mode of transportation. Threat of
new entry is moderate; high capital requirement and government barrier such as
air service agreement can act as barriers to entry.