According to International Air Transport Association (IATA), air travel continues to expand in a healthy way. Compare to the same period in 2012, the overall demand for air travel increase 5.6%, while capacity rose by 5.2%. In the region of Asia Pacific, international traffic rose by 3.7% in May with China and Japan recorded 13.4% and 5.9% of growth in their respective domestic market. The statistics clearly show that air travel performed relatively well across the world despite the global economy facing some uncertainty. Air Asia which is the largest low-cost airline group in Asia is slowly losing its ground to nearby rivals-Lion Air. According to Centre for Aviation (CAPA), Lion Air currently holds 35% of Southeast Asia’s capacity thanks to its extensive Indonesia domestic market. While, Air Asia has a 32% market share in the region with a mere 2% of the Indonesia domestic market. T...