PROPOSED BUSINESS STRATEGY FOR LOW COST CARRIER TERMINAL DEVELOPMENT OF SOEKARNO-HATTA AIRPORT

• Main Author: Indra Irawan, Rifky
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/42811
• Institution: Institut Teknologi Bandung

Soekarno-Hatta Airport (CGK) is the largest airport in Indonesia and is also the busiest managed by PT Angkasa Pura II (AP II). In 2019, a revitalization program will be planned to increase capacity in Terminals 1 and 2. At the same time, the Government, which is boosting the growth of the tourism industry, has instructed AP II to build a Low Cost Carrier Terminal (LCCT). In line with the government program, the LCCT concept is synchronized with the revitalization program. The LCCT CGK service concept is divided into seamless journey, fast processing time, differentiated services. In LCCT the proportion of commercial space has decreased dramatically from before. This is coupled with the absence of a concrete business strategy. The purpose of this study is to analyze the business situation and identify business strategies that are in accordance with the LCCT concept and what resources must be formed. To find out the latest conditions of the CGK LCCT development plan it is necessary to explore the business situation by using an external environment analysis and internal condition analysis. From external environment analysis, this research can formulate opportunities and threats in the industrial environment with PESTEL tools, Porter's five forces, competitors and customer analysis. Meanwhile, internal condition analysis can formulate the strengths and weaknesses of LCCT CGK by using resources, capabilities and core competencies analysis. The four aspects are analyzed through SWOT. For this reason, a business level strategy and functional level strategy were designed. Business strategy uses dual strategy: integrated cost leadership and differentiation. Cost leadership covers the elimination of conventional service facilities and moving aerobridges to Terminal 3. While examples of differentiation are the implementation of total self-kiosk check-in, web check-in, self-baggage drop, digital way finding and the provision of e-commerce in LCCT. Whereas functional level strategy uses marketing, operational and organizational strategy. After compiling the business solution, a conclusion, recommendation and implementation plan are also arranged. Recommendations related to the above problems are CGK employees must leave the comfort zone, apply the LCCT concept and also understand the different characteristics of LCC passengers; Collaboration must be increased between units (internal) and with other stakeholders (external) in order to succeed the implementation of the CGK LCCT. The implementation plan contains program actions, unit in charge, objectives and timelines.