PT. Germania Trisila Air (GT Air) : Low Cost Carrier Model in Indonesia

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Hutapea, Caroline and Poluan, Ch. Sutji K. and Suwito, Indah Wati and Sutanto, Irianto and Bintoro, M. Adie and Budianto, Roy and Sujatmiko (2005) PT. Germania Trisila Air (GT Air) : Low Cost Carrier Model in Indonesia. Project Report. Sekolah Tinggi Manajemen IPMI, Jakarta. (Unpublished)

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The emergence of low cont carrier business in Indonesia was starting significantly after crisis period, supported by government deregulation to compete with foreign airline. Another factor contributing to this positive outlook in the fact that demand had been shifted from land transportation, sea, and air transportation, by recently launched airlines using low-cost concept. Significant growth can be seen from the number of passengers which reached 12.3 million in 2002 and 19.1 million in 2003. It is estimated that the number of passengers will reach 24 million in 2004 or Incremental of 20% from year 2003 to 2004. Low cost carrier is a model of airline that offer a product by eliminating most traditional passenger service. Through that strategy, low-cost carrier have substantially lower unit costs, however they do not have substantially lower unit operating revenue. This business offers service of flying with simple product, focused strategy, and low cost operation. It is an obvious that the key success factor of low cost is a very well run operation function. It can reduce its operating expenses dramatically compare to network/full service carriers. The lower operating expenses, the higher operating margin can be reached. By assessing macro economic of Indonesia, understanding the market needs, and enabling all activities to be integrated into one strong link of cost efficient generator, the model of low cost carrier business that is sustainable for Indonesia can be figured out. Indonesian customer's character in using aircraft service is unique, significantly shaped by the culture Thus the survey was conducted to asses the needs of the market The rank of priority in term of selecting airline, most of airline user choose safety as the most important things Punctuality of arrival/departure and fight schedule are chosen as the next priorities subsequently. Some of the uses consider the image of airline can be important In fight service is not classified in customer priority list in selecting airline. Furthermore, the market was also assessed for their preferences of activity done in the business process, such as ticket reservation, baggage limitation, fight crew handing seat allocation and other activities based on the theory of low cost carriers Then the market preferences are put in activities which analyzed using Porters Value.

Item Type: Monograph (Project Report)
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Divisions: Library > GFP (Group Field Project)
Depositing User: Dede Faujiah
Date Deposited: 16 Jan 2020 11:01
Last Modified: 22 Jan 2020 02:41

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