I think the majority of the cost savings are because it's a dedicated low-cost terminal. They have a lounge, but the airport isn't as "luxurious" to the rich.

I think the majority of the cost savings are because it's a dedicated low-cost terminal. They have a lounge, but the airport isn't as "luxurious" to the rich. It's Air Asia's main airport, and Air Asia is quite good at managing costs. Their flights are shorter (only in south east Asia, with just a few connections to China, India, Korea, Sri Lanka, and Nepal), so there is no need for a bigger airport hotel.