EQUITY FINANCING AND BUSINESS MODEL SELECTION ON FULL FLIGHT SIMULATOR PROJECT IN PT GROUND SUPPORT INDONESIA

• Main Author: FAJAR (NIM: 29109017); Pembimbing: Ir. Uke MMP Siahaan, MBA, ADE
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/17758
• Institution: Institut Teknologi Bandung

PT Garuda Indonesia, as Indonesia flag carrier, has a plan to rejuvenate their current Boeing 737 series fleet. The company plans to replace all their Boeing 737 Classic series (300, 400, 500) to a brand new Boeing 737 New Generation with total 90 fleets in 2014. <br /> <br /> <br /> Major issue that PT Garuda Indonesia face due to incremental of 737 NG fleet is the cinreasing number of cockpit crew, which all the cockpit crews are entitled to take a simulator training seat, and PT Garuda Indonesia has none. To overcome the training needs, they have sent the cockpit crew to overseas for training. In long run, this method is considerably costly. PT Ground Support Indonesia came with business solution by providing simulator training that will held in Indonesia. By doing that, PT Garuda Indonesia may expect 40% training cost saving per year plus lesser loos time due to inactive cockpit crew during simulator traiing. <br /> <br /> <br /> This thesis focus on how PT Ground Support will run the project, start from how to financing the equity and business model options that may available : as Operator or Lessor. To decision making tools, it used Capital Budgeting technique and use Net Present Value (NPV) and Internal Rate of Return (IRR) as parameter. Eventough from the calculation PT Ground Support Indonesia <br /> <br /> <br /> must select one of the best business model, yet the other business model may be a negotiation tools <br /> <br /> <br /> with PT Garuda Indonesia. Implementation plan also presented as guidance to PT Ground Support Management to run the flight simulator project effectively and efficiently.