Karen Kartika Putri Primary Author AM Zeline Primary Author Yoanita Octora Primary Author Edhie Budi Setiawan Primary Author

One of company's strategies in creating market share is to set low prices for services they offer. This strategy is also widely applied in Indonesia’s aviation industry which involves several competitive low-fare airlines. The airline that will be discussed in this paper is Indonesia AirAsia which operates scheduled domestic and international flights and offers low fares, especially for international routes. The purpose of this study is to determine the influence of differentiation strategy and promotions on competitive advantage. The population of this study were passengers of Indonesia AirAsia. Data were collected by distributing questionnaires to 100 respondents. The research method was simple random sampling and data were processed using the SPSS Statistics Version 24. The results of this study have shown that there is a positive and significant relation between differentiation strategy and promotions on competitive advantage of Indonesia AirAsia. Indonesia AirAsia offers relatively low-price tickets and it becomes interesting advertisements to promote their services so that they are easily accepted by public.