ALLIANCE AND INTERLINE NETWORK BUSINESS STRATEGY AT PT GARUDA INDONESIA (PERSERO) TBK

• Main Author: Amalia, Rizki
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/47501
• Institution: Institut Teknologi Bandung

The vast market in Indonesia is up-and-coming, makes many airlines compete to grab the potential Indonesian market. It also related to the government goals to increase the number of tourists arriving in Indonesia by improving the international airport facility and capacity to attract foreign airlines to enter the Indonesian market. For the full-service carrier, it’s impossible to expand a global network to serve passengers from all over the world alone. Instead, airlines have formed strategic alliances with foreign carriers to provide maximum opportunities by integrating activities in various ?elds such as: optimize their existing networks and fleets, creating new routes and hubs, joint sales and reservation, joint advertising and promotion, joint loyalty program and service, and joint operational efficiency. The alliance is also to overcome the restrictions over route access and airline ownership imposed by national government and opportunities to reshape industry structure and to raise a barrier against new entrants. The problem of Garuda Indonesia’s interline/codeshare product is underperformed sales and low contribution to revenue, while the number of the agreement gradually increases. The final project will explore the challenges under current interline network and alliance performance, looking for a strategic alliance for GA to increase revenue from the interline/codeshare network, and the implementation of its strategy. The research is performed by combining qualitative and quantitative methods by interviewing 7 (seven) respondents from 5 (five) different unit functions to give the researcher insight and comprehensive understanding of the challenge on interline network and alliance. The research also performed the survey through questionnaires for the public to identify the awareness and preferences of the public in the interline network and alliance product. The research result concludes that there is five main challenge that affected the interline revenue, which are technology gaps, inconsistency product, uncompetitive price, lack of knowledge of the people, and lack of promotion. Diamond strategy concept used to sharpen the strategy that will be implemented. The implementation plan is also prepared to be well executed.