introduce by America Southwest Airlines in 1973, Low Cost Carrier (LCC) have gain popularity and proven to be profitable [Uherek, 2006]. Many new companies had been form to provide this service around the Asian region around 1990s, currently Asia region have over 60 of such LCC mainly offering short distance flight within same country. Some of these airlines have started to offer long haul budget airline, for example Air Asia had introduce Air Asia X in 2007 that offer flight from Malaysia to London, Australia and India [Kent, 5th Jan 2007]. Although these Low Cost Carrier (LCC) were not yet considered as a direct competition to SIA as the target market for these airlines is more for cost conscious traveller, it is possible that in not so distance future, these LLC will venture into the premium market sector when the company reach certain level of business expertise. This trend is highly possible and should not be overlooked by SIA in the long run. It would be safe to assume that the treat of new entrants are remains low at the moment. 4.2 Rivalry among existing firms The goods in the airline industry have fairly short shelf live, the service is consider a loss once the airplane take off, and all cost incur are not recoverable. The seats are usually around 75% full in capacity. Airlines that are dominant in Singapore region and consider in direct competition with SIA are very few, they are Malaysian Airlines System, Japan Airlines, Cathay Pacific and British Airway. Even though there are few airline able to compete against SIA, these entire airlines are very similar in size and market shares, 2008 study on international passanger-kilometer flown for these airline range from 113,000million to 83,000million [IATA, 2008].