#TITLE_ALTERNATIVE#

• Main Author: NURKITO (NIM 24005027), ERDI
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/7811
• Institution: Institut Teknologi Bandung

Since 1999 government of Indonesia has been issuing new policy to change the system of business and flight license of airline from close and selective system to be open system that valid for all citizens. This policy was purposed to push and accelerate the growth and development of national airline industry. It is expected that the new policy will effect either direct or indirect to national economic that was collapsing caused by global economic crisis. Before 1999 the amount of national airline company is only 6 companies, but now as of June 2007 has been registered at least 55 airline companies in Indonesia. Then due to the amount of airline companies growth too fast and not under control, so some problems rise up that cause national airline become unhealthy. Example, such as tariff war with abnormal price to get more passenger, reduce operation cost to get profit by reducing aircraft maintenance budget, not replace broken part, less attention in safety and security factor, rent and operate old aircraft that more than 30 years old due to cheap rental cost, substandard service quality to passenger, and so on. Finally this condition increase incident and accident number with significant injured and fatality victim. Also many airline companies or at least 25 airline companies stop operation that caused by lost, lifted or frozen their flight license. Its impact become complicated after United of Europe issuing flight band for Indonesia airlines to 27 Europe countries and travel warning on July 6, 2007 due to safety and security reason. This condition becomes bad image for Indonesia airline in international community. So there is a gap between desired stage and actual stage after government issuing new policy. This gap is the problem, and this problem must be solved soon. To solve this problem so need to perform several steps i.e. first, collect and identify all problems that experienced by stake holders of national airline industry. The stake holder consists of government as regulator, entrepreneur as service provider and community as service user. Second, collect all required supporting data from government or Directorate General Civil Aviation, Mandala Airline, AirAsia, Top Sky Airline, news papers, magazines, literature, internet and others. Third, analyze all problems that focused on policy and regulation of airline. Because these problems happened after 1999 or after government changing the system of business and flight license of airline from close and selective system to be open system that valid for all citizens. Also analyze about its barriers, potential and the prospect of national airline business. <br /> <br /> <br /> <br /> After being analyzed comprehensively and thoroughly, so it can be concluded that the root cause of problems that happened is caused by the policy is not optimally implemented because: first, government has not prepare pre-condition to support the successful of the policy, include infrastructure, regulation, organization and human resource. Second, there is lack of supervision to policy implementation that include monitoring, evaluation and auditing to policy implementation. Third, less consistency in implementation of corrective actions (counseling, warning, improvement, lifting and others) for deviation of government policy implementation. Meanwhile, based on potential of geographical, population, tourism, people purchase power, the statistic data of airline passenger from 1993 to 2007 and trend prediction of airline passenger up to 2025 for domestic and international so it can be concluded that airline business in Indonesia has very good prospect. <br />