Abstract
This chapter explores the changes occurring in the adopted strategies of airlines and the implications of new strategic orientations on the design of organisational performance management systems. It examines the implications of strategy on the design of performance management systems. The chapter discusses AirAsia, primarily focusing on the linked set of business activities and performance management processes and systems that serve to underpin its LCS. It examines the factors associated with and characteristics of the newly emerging hybrid model, and the implications of adopting a 'new world' carrier strategy for AirAsia's performance management system design. Based on Sweeney's argument, LCSs, and especially AirAsia, since it is widely perceived as best in its class for achieving low costs, are well placed for attaining the 'new world' carrier nomenclature. AirAsia is well placed to move towards being a 'new world' carrier, as the performance management system already has a unique culture that values team work, innovation, fun and openness.