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The concept of a low cost carrier (LCC), that got instant popularity in the US in the 1970s, was adopted in Europe in the 1980s. Asia was a little slow in picking up the trend. The first LCC in Asia, the Orient Thai, started in the mid-1990s in Thailand, faced lot of problems as the government of Thailand saw it as a threat to its national carrier, Thai Airways International. Subsequent deregulation of the domestic aviation industry in Thailand came as a breather for Orient Thai. Following this example many other LCCs sprang up in different Asian countries like the Cebu Pacific Air (Philippines), AirAsia (Malayasia) and Deccan Air (India). Seeking to tap the potential of LCC''s, even the national carriers jumped into the fray in 2003. In December 2003, Singapore Airlines (SIA) announced the launch of its forthcoming LCC - Tiger Airways. Thai Airways was also planning to launch its own LCC , Nok Air, by mid-2004. This case helps the reader to understand the basic business model of the LCCs and the factors that prompted the growth of LCCs in Asia. A structured assignment ''304-191-4'' is available to accompany this case.