This report provides a comprehensive analysis of AirAsia's business-level strategy, focusing on its transformation into a successful low-cost carrier. It examines the company's adoption of a no-frills model, its use of Porter's Five Forces to analyze the competitive landscape, and the strategies it employs to sustain its competitive advantage. The report highlights AirAsia's innovative approach to the airline industry, including its adoption of ticketless travel and free seating policies. It also discusses the company's marketing strategies and its ability to overcome challenges and convert them into opportunities, ultimately showcasing the airline's strategic decisions and their impact on its market position and profitability. The report draws conclusions based on the analysis of the airline's strategic choices and their impact on its success in the market.