Strategic Management Journal: Airline Strategies in Response to Fluctuating Avtur Prices: A Competitive Analysis of the Indonesian Aviation Industry
Abstract
The airline industry in Indonesia faces complex challenges, including high ticket prices often attributed to the cost of aviation fuel. The article "Expensive Airplane Tickets! Are You Sure It's Because of Pertamina's Avtur?" from the SPP UPMS III Bulletin, edition 03/10/2024, sparked a discussion on the factors determining ticket prices, refuting the dominance of aviation fuel prices and highlighting the role of oligopolistic market structure, government tariff policies, and non-aviation fuel cost components. This journal will analyze these factors in depth using a strategic management approach, covering external environmental analysis, competitive industry dynamics, and strategies implemented by domestic airlines in response to fluctuation of aviation fuel prices. The analysis is enriched with data and case studies of several domestic airlines in Indonesia, providing a comprehensive overview of the competitive strategies adopted to achieve sustainability and profitability amidst intense competition and complex industry dynamics
Keywords: The aviation industry, jet fuel prices, oligopolistic market structure, competitive strategies, domestic airlines, Indonesia.
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Open Access
HUMANIS (Humanities, Management and Science Proceedings) is a national peer reviewed and open access journal that publishes significant and important research from all area of agroindustry.
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