INDONESIA AIRLINES' COMPETITIVE STRATEGIES

The more open the global economy, the increasing use of airlines, at the same time tightening competition, both domestic and international flights. Therefore, this study seeks to see and analyze the airline's marketing strategy from the perspective of flight service quality and price penetration. To test the research data, used quantitative methods with regression analysis techniques. This is to see the possible cause and effect of a variable, so that the effectiveness of the implemented strategy is known. The object of this research is Citilink airline users, using accidental sampling technique. The results showed that statistically there was a causal relationship that was linear. Where there is an increase in the use of airlines when there is an increase in service and price promotions. This confirms that if the airline's competitive strategy is through strengthening services and competitive prices, it can strengthen the airline's competitive position.


I. INTRODUCTION
The era of globalization has created a world that seems borderless, countries that are interconnected with each other to facilitate communication for the creation of world economic growth and development. In fact, many companies are no longer staying in one country but they are starting to open their branches in other countries. As a result of this, a challenge arises for airlines that are felt to be increasingly difficult, both domestic and international flights. Not to mention the aviation business is faced with international policies such as deregulation, liberalization, privatization, multilateral agreements, and alliance strategies that have encouraged the emergence of megacamers on a global scale.
For Citilink Indonesia, the business prospects in the aviation business currently and in the future have great potential for growth. Existing markets in various regions can still be developed further, it is estimated that the aviation market grows by approximately 5.7% per year. This is in line with rapid economic growth both domestically and in the Asia Pacific region. However, without proper preparation and implementation of a comprehensive integrated corporate strategy, Citilink Indonesia could fall in the midst of rampant competition in the aviation industry. Although government protection may still be possible to protect Airlines , but in the future it seems that it must be released. Considering the insistence on "open sky" through multilateral agreements such as GATT and bilateral agreements , which are getting stronger, as well as economic considerations that the contribution of the aviation business world is only about 7% of the overall economy.
Inventure (2017) provides information that the pace of competition between airlines is very tight. This is evident from the business position that Garuda and Citilink are overtaken by Lion Air with a high business growth rate and almost 50 percent market share, followed by Garuda with around 25 percent, Sriwijaya Air with almost 12 percent and Merpati Nusantara with 3 percent.
The occurrence of the above is partly due to the issuance of PP-20 which provides the widest opportunity for foreign private companies (PMA) to establish airlines in Indonesia, as well as the cooperation between the Government of Indonesia and the Government of Singapore in the tourism sector, which has opened a route direct flights from Singapore to several cities in Indonesia, both by Singapore Airline and carriers in Indonesia and also the granting of fifth freedom to Singapore Airline for flights to Australia.
On the positive side, the current flight growth is very promising, this needs to be taken seriously by Citilink Indonesia considering the market growth is getting bigger. In the category of developing countries, the Indonesian aviation industry is included in the fastest category in Asia, even the world. From 2008 to 2014, the growth in the number of airplane passengers reached 16%. Along with economic growth and the increasing number of middle class consumers, the growth in the number of airplane passengers in 2015 could reach 20%. In 2014 it is estimated that the growth of the number of passengers will reach more than 100 million people and by 2021 the number of airplane passengers in Indonesia will reach 180 million people.
Not surprisingly, Indonesian airlines are competing to develop the domestic aviation market by buying propeller a capacity of under 100 seats in addition to buying largebodied aircraft in the Singapore Airshows. At least three domestic airlines have purchased and ordered this small type of aircraft at the Singapore Airshow. The three are Lion Air, Garuda Indonesia and Citilink as well as Merpati Nusantara Airlines. After Lion Air, Garuda Indonesia and Citilink bought small propeller aircraft, Merpati Nusantara Airlines also ordered 40 ARJ aircraft from China through the Singapore Airshow. "The pigeons ordered 40 ARJ aircraft from China, they are collaborating with PT DI for this order," said Director General of Civil Aviation at the Ministry of Transportation Herry Bakti S. Gumay on the sidelines of the signing of the contract for the purchase of 27 ATR aircraft by Lion Air at the Singapore Airshow, this weekend. Kompas.com/12 February 2012/accessed 31 March 2017). Herry added that Merpati together with PT DI had just made a memorandum of understanding (MoU) with ARJ which was witnessed by the State Minister for State-Owned Enterprises Dahlan Iskan.
It is undeniable that the increasingly competitive condition of the airline industry between companies has triggered every company to want to expand the market. The problem faced by Citilink is the fluctuation of passenger occupancy rates. Citiink has taken various ways to increase the number of its service users, such as providing a 25% discount for children under 12 years old, channels at various minimarkets to make it easier for consumers to make purchases and pay for tickets, and cooperate with various card issuing banks. credit so that consumers can get cashback when purchasing tickets. However, the efforts that have been made have not resulted in an increase in the occupancy rate of passengers or the Seat Load Factor (SLF).
There are many factors that influence consumer decisions in buying tickets, including the price factor and service quality. Research conducted by Weenas [1], Apriyani [2], Pongoh [3], Kodu [4], and Atmaja & Adiwinata [5] suggests that there is a positive and significant effect of price and service quality on purchasing decisions.

II. THEORY BASIS
Price is a level of a person's ability to value an item with a value or unit of measurement in rupiah so that he can have the goods or services offered. This means that price is one of the determinants of consumers in determining a purchase decision on a product or service. Moreover, if the product or service to be purchased is a daily need such as food, drink and other basic needs, consumers will pay close attention to the price.
In general, when consumers make purchases, the price factor is the first factor to be considered, then adjusted to their own abilities. If the price offered is quite attractive and in accordance with the consumer's purchasing ability, then the possibility that consumers will make a purchase decision is very large. On the other hand, it is likely that consumers will delay or move to another place that is considered to offer the right price, even though there are some consumers with upper middle income who think that the price offered is expensive, not a measure [6]. Therefore, it is important to determine and set an attractive price strategy, one of which can be done by carrying out a discount strategy (big sale), giving cash back, giving gifts if you buy certain goods or a certain amount, setting prices based on sales and psychological prices. In other words, we can conclude that the price factor is a factor that can determine purchasing decisions.
Service quality is an effort given by the company in order to meet consumer needs to achieve satisfaction [7]. Meanwhile, what is meant by service quality according to Hurriyati [8] is an action taken to meet the needs of other people (consumers, customers, clients, guests, etc.) whose level of satisfaction can only be felt by those who serve and those who are served.
Referring to the notion of service quality, the meaning of the concept of service quality is a responsiveness and reality of the services provided by the company. Good service quality usually first looks at the needs of new customers after which adjustments are made to what services are right for consumers and how to implement services that can give birth to customer satisfaction. Some simple things that can be done are by establishing a friendly attitude policy from employees such as greetings, greetings, smiles, responsiveness to consumer needs, responsiveness to consumer complaints and a friendly attitude to customers. If the service attitude of the company is getting better, it will foster a sense of customer satisfaction and in the end will shape the attitude of consumers who make decisions to make purchases at the company.
In line with the explanation above, Ekasari & Putri [9], Jubaidah, Binangkit & Akhmad [10], Karundeng, Soegoto & Arie [11], and Budiono [12] stated that price and service quality are not only statistics have an effect on purchasing decisions, but both also have the opportunity to influence satisfaction and loyalty. Even the price variable in certain circumstances can create word of mouth, where consumers/customers naturally become a free promotional tool.

III. RESEARCH METHOD
In order for the ideas that have been built to be studied and analyzed, scientific steps (research methods) are needed, including: 1. The nature of research using deductive (departing from the Research gap and theory). 2. The research approach uses quantitative. 3. The type of explanation is descriptive and verification. 4. The object of research is Citilink Indonesia. 5. The unit of analysis is consumers and customers of Citilink Indonesia 6. sample technique uses Accidental Sampling. 7. The method of analysis used multiple linear regression. 8. The data was obtained through the distribution of questionnaires 9. In drawing conclusions, the results of statistical analysis were described and explained the meaning of each value. So that the appropriate result information is obtained Based on the table above, it can be stated that the relationship between price and purchasing decisions goes to Strong category (0.669). While the relationship between service quality and purchasing decisions is in the Medium category (0.571). Can be concluded; 1) in the aviation industry, the main factor influencing consumer decisions to make purchases is influenced by price. 2) the characteristics of consumers/users of air transportation (airlines), especially in Indonesia, are dominated by consumers with middle income levels, so that service quality is not the first priority, but price. Therefore, it is not surprising that if the price of airline tickets goes up, the volume of ticket sales decreases drastically. 3) the behavior of users of air transportation services, especially in Indonesia, has other alternatives, such as trains and ships, thus air transportation is an alternative choice, not the main choice. Based on the SPSS output above, the following explanation can be put forward: 1. The price variable has a t-count value greater than t table (5.484 > 1.984). This means that the price is proven to have a positive effect on purchasing decisions. By interpretation, if the price increases by one unit, the purchase decision will increase by 0.510. The significant value is less than 0.05 (0.000 < 0.05). This means that the price has a significant effect on purchasing decisions. By interpretation, the price variable is able to explain purchasing decisions well with a regression coefficient of 0.510 [13,14]. 2. The service quality variable has a t-count value greater than t-table (2.768 > 1.984).
This means that service quality has a positive effect on purchasing decisions. By interpretation, if the quality of service increases by one unit, the purchase decision will increase by 0.258. The significant value is less than 0.05 (0.007 < 0.05). This means that service quality has a significant effect on purchasing decisions. By interpretation, the service quality variable is able to explain purchasing decisions well with a regression coefficient of 0.258 [15,16]. Based on the table above, it is known that the calculated F value of 45.311 is greater than F table of 3.09, it can be concluded that together the price and service quality has a positive and significant effect on purchasing decisions. Furthermore, it is also known that the value of the contribution of price and service quality variables is 0.477 or 47.7% on purchasing decisions, while the remaining 52.3% is explained by other variables outside of this study.

V. CONCLUSIONS
The findings of this study are; 1) The results of the regression analysis prove that the price strategy has a positive and significant effect on purchasing decisions of 0.510 and t count 5.484. 2) The results of the regression analysis prove that service quality has a positive and significant effect on purchasing decisions of 0.258 and t count 2.768. and 3) The results of the regression analysis prove that the price strategy and service quality together have a positive and significant effect on purchasing decisions with a contribution of 47.7% while the remaining 52.3% is explained by other variables outside of this study.
From the results of the analysis, the following suggestions can be made: 1) The results of the correlation test show that the price strategy variable which reads "Payment tickets can use vouchers" has the smallest correlation value. It is hoped that the Citilink airline management can create a payment program with a variety of payment methods, one of which can pay with the voucher method. 2) The results of the correlation test show that the service quality variable which reads "Citilink airline flight attendants understand the best service needed by passengers" has the smallest correlation value. It is hoped that the Citilink airline management will periodically provide service quality training to flight attendants and supervise the implementation of the service SOPs that have been set and an assessment of the flight attendants who have implemented the service SOPs well.
3) The results of the correlation test show that the purchase decision variable which reads "I want to use Citilink airline" has the smallest correlation value. It is hoped that the management can create marketing programs that can increase the desire or interest in purchasing Citilink airline tickets, for example weekend promo programs, all-in promo programs (tickets + hotel packages, etc.). 4) The results of the analysis show that service quality has the smallest effect and correlation value compared to the price strategy variable. It is hoped that the Citilink airline management will continue to improve the quality of passenger service, for example by providing friendly, courteous and responsive flight attendant services. Then provide quality service in terms of the quality of aircraft facilities, for example, free drinks, free meals and internet access are available.