Airline travel agency AirAsia in the domestic airline low cost strategyThere are three major characteristics of the airline industry namely is product nature, its expenditure structure and its market entry conditions. Airline agent's product is homogeneous or undifferentiated, causing significant competition in airline domestic travel or foreign travel both markets, which are free from regulations and economic barriers. However, high capital and operating expenditure is another important characteristic of the airline industry. Aircrafts, airlines' major capital expenditure are very costly to acquire . For operating expenditures, aviation fuel and labor make up the two major costs in the industry.Another important characteristic of the airline industry is the conditions for market entry, which differs between international and domestic airline markets . In the international travel market, airline travel agency entry is very difficult as international flights and routes are the results of regotiations between governments . On the other hand, in the domestic and regional travel market, travel agency entry depends on the level of deregulation or liberalisation. More and more countries, however are opening up their domestic travel markets for more competition. In addition, government plays an important role to regulate the travel markets and existing players may significant influence over now travel agent entrants.In fact, the mjor factors influence to international or domestic travel consumption increasing numbers are the global economy and safety issues, instead of other different economic factors, such as travel destination choice, electronic air ticket or paper air ticket price, hotel price, the country's political change, e.g. war occurrence, bad weather, e.g. very cold or very hot etc. different factors infuence. Because generally, the world or any region of it is in an economic crisis or depression, the demand for airline services will fall. The late 1990 year Asian financial crisis for example, resulted in minimal increase in the number of worldwide airline passengers incrased only minimally from 1997 to 1998 year. Another factor of influencing the travel passenger number to be decreased, it concerns safety issues are also an important driver of the travel industry, which is subject to very safety standards to influence travel passengers' travel choice to the country. In addition, they are also unexpected safety related events, such as the 11 Sept. 2001 year tragedy in the US, which caused reduction in passengers . The increasing popularity of low cost airlines is the newest trend in the airline industry if which hope many passengers choose to buy whose electronic air ticket or paper air ticket to catch which planes to fly from online travel agent or offline travel agent channels.The rise of low cost airlines, such as AmericaWest, JetBlue and Airtran in US, Ryanair and EasyJet in Europe and Vigin Blue in Australia. The share of low cost airline strategy is popular in the US and European airline market. For example, the Southwest airline low cost strategy is the basis of most low cost airlines operations. The key of the strategy is to reduce costs when at the same time offering low prices to passengers. History showed that the low cost airline strategy is easy to replicate, but difficult to implement successfully. However, I suggest airlines need to know what functions which can attract passengers to chose to catch their planes to fly if they expect to rise passenger numbers. For example, the critical function of the Malaysia airline travel is to connect the major towns and remote interior areas within East Malaysia, which has poor road systems and limited availability of other significant means of transportation . In constrast, West Malaysia has more developed and extensive rod and railway systems.