You would expect Chong Phit Lian, the Chief Executive Officer (CEO) of Jetstar Asia, not to be so chirpy and cheerful when you meet her. After all, high fuel prices are expected to hurt low cost airlines like hers the most because their key to survival is, well, keeping costs low.

And with fuel now accounting for 40% of an airline's bills, you can bet that the low cost model, in particular, is under pressure.

But the Malaysian-born CEO of the Singapore-based Qantas subsidiary is a pragmatist. "When things get so down, the only thing that can happen is for them to go up," she says. "Along the way up, some may fall and some will rise. You have to maintain a positive outlook, manage costs and ensure yields are in the right direction.

"Also, cost is a relative statement. What is cost to one is a real opportunity to someone else. The key is how to value-add. I tell my staff, don't tell me how you have cut costs, tell me how much you have value added."

During our interview in Delifrance Terminal 1 of Changi Airport, Chong stands in queue for a coffee along with the rest of the customers. "I've always been a believer in self-service. I think it's because I am so impatient that I think it's faster if I do things myself.

"Once in China, I walked into the kitchen and asked if I could cook my own food because they were taking so long. My end objective is always to get things done."

Chong, who came into the airline business from the cold - she was CEO of several Singapore companies but never in aviation - has succeeded in getting things done at Jetstar Asia since taking over the reins in early 2006.

Just last month, the airline was awarded the 2008 Skytrax Best Low Cost Airline Award in two categories - Best Low Cost Airline in Asia and Best Low Cost Airline in South-east Asia.

In April this year, Jetstar announced it had gone into the black in the year that ended 31 March, 2008 - with a 20% increase in passengers and a passenger load factor of 75%, a growth of four percent over the previous year.

Whether it will stay in the black by the end of this financial year is another question but Chong says, "We are pushing very hard to get things done."

This means, making the airline more efficient - it has consolidated flights by focusing on the more popular routes and reducing the less frequented sectors - and trying to get as many bums on seats as possible.

"We have introduced a lot of promotions as well to keep people still flying. Price does move people sometimes. When demand is low and price is good, smart travelers know it's the best time to buy."

"High fuel costs or not, travel is part of our lifestyle. When everything is going up at the same time, we will arrive at a new equilibrium and everyone will adjust to a new commercial reality. It will take time but it will find its own level."

While demand on shorter routes has softened, Chong has also noted more business travelers taking low cost carriers, especially on flights to Indonesia.

"We have seen a 2-4% drop in loads but at the same time, we have increased capacity, so our total number of passengers has increased."

With up to 80% of its business coming through its website, Jetstar Asia will continue to invest in this channel. "We've found it to be a very effective channel, especially in a market like Singapore. We also have a site for agents because there are still customers who still want that face to face contact."

The airline also has a Jetstar Fan Club in which customers are encouraged to post travel reviews and photographs.

As for ancilliary revenues, Chong said it is still not a big part of the airline's revenue model at the moment. "We do earn a fair amount through our food & beverage sales, as well as duty free and commissions through selling insurance and hotels, and soon, land packages.

"It's a question of what else can you can sell onboard without antagonising your customers, and without adding complications to the crew process."

Chong said Jetstar Asia was also looking into "arrangements to tap on passengers who fly to Singapore on other carriers". "Not necessarily interline but self-interline - consumers are getting more knowledgeable and it's a question of how we can reach them."

One thing she is looking forward to, but with some mixed feelings, is the prospect of open skies in ASEAN which is due supposed to kick in by January next year. "It's a double edged sword. Open skies could mean everyone setting up airlines, flying the same routes and hurting each other for a while. But it's a good move for ASEAN in the long run."