The birth of low-cost carriers (LCC) in recent years, have added a new dimension to the aviation business, especially in Asia. There have been several success stories of these LCCs, compared with conventional full-serviced carriers. Two renowned airlines in Asia, Air Asia and Singapore Airlines have been chosen as our sample companies for the purpose of this research paper. Air Asia will represent the LCC segment, while Singapore Airlines is the proxy for traditional carriers. These two classes of airlines have different business models, which prompt us to find out how each has performed in the recent financial meltdown in 2007/08. In this paper, we will use financial ratios and stock analysis to find out the performance of Air Asia and Singapore Airlines. This quantitative and event methodology approach is apt to provide market participants, such as investors, which segment of the airline industry tend to outperform in time of an economic crisis. Based on our empirical findings, we have found that Air Asia has a better financial performance and is a less risky stock, compared with Singapore Airlines, during such economic downturn. So investors seeking for a more sound investment in such troubled times, may be able to find some gem in LCCs.