PROPOSED STRATEGIES FOR PT INDO AIRCRAFT MAINTENANCE RELATED TO ENVIRONMENTAL CHANGES DUE TO THE PANDEMIC

• Main Author: Kumala Nur Azizah, Alfia
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/53368
• Institution: Institut Teknologi Bandung

PT Indo Aircraft Maintenance (IAM) is a company engaged in maintenance, repair, and overhaul. Indo Aircraft Maintenance has the majority of the market in the domestic area which is held by affiliated groups and non-affiliated groups in the international area. However, in 2019, IAM encountered a problem where the company lost $ 2.9 million. There were limited cashflow of companies due to poor ability to pay domestic airlines, unfulfilled customer expectations, uncertain global conditions and the dynamics of the aviation industry. In March 2020 large-scale social restrictions (LSSR) implemented around the world limited the movement of individuals and decreased the number of passengers on planes. IAM whose majority of revenue comes from airlines in the affiliate group category is receiving difficulties. IAM experienced a 35% decrease in revenue until the first half of 2020 and continue to decline until the end of 2020. In order to improve company performance, it is necessary to formulate a strategy for the IAM business unit starting from an environmental analysis which is divided into two, namely external analysis using PESTEL and Porter's 5 forces tool, then internal analysis related to the company's finances and current condition using VRIO. This study uses a qualitative method where company data is obtained through interviews with the Senior Manager of the strategy management office. The analysis concludes that new entrants are starting to exist and putting IAM capabilities to question. Furthermore, SWOT will be used as a reference for strategy formulation through 3 stages. The first stage or input stage uses the IFE and EFE Matrix, where the weight and rating data are carried out by representatives of the company. The results from the input stage are processed to be mapped to the Internal-External Matrix in the matching stage. Generated alternative strategies, namely market penetration and product development, w¬ill be graded by its pros and cons, and market penetration is the best strategy obtained. Market penetration is focused not only on aircraft maintenance but other business units such as the Industrial Gas Turbine Engine (IGTE) and recently military aircraft maintenance. In order for the corporate strategy to perform well, a functional strategy is formulated based on 4 core functions, namely marketing, operations, human resources management, and financial. Market penetration is a strategy that needs to be implemented in current conditions and does not rule out future product development strategies. The conclusion from the study, PT IAM is in a fragile condition. The company does not yet have the competitive advantage that can prepare for global market. In order to increase revenue, companies need to think about suitable penetration efforts in order to survive.