CASE STUDY GARUDA INDO MAKALAH .doc

8/10/2019 CASE STUDY GARUDA INDO MAKALAH .doc

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CASE STUDY

GARUDA INDONESIA

Marketing

Young Professional 51BA Syni!a"e #

Metalia Kusuma Wardhani 29114752

Annisa Swavira 29114858

David Rinaldi 2911488

Ri!ki "ingga War#$n$ 291149%4

$ASTER O% BUSINESS AD$INISTRATION

SC&OO' O% BUSINESS AND $ANAGE$ENT

INSTITUT TE(NO'OGI BANDUNG

)*1+


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CO$PANY PRO%I'E

&aruda 'nd$nesia is a (ull)servi*e airline+ ,he *lass *$n(igurati$n is divided int$

e-e*utive ./usiness0 and e*$n$m# *lass+ Aside d$mesti* r$utes whi*h serve 'nd$nesian large

*ities the airline (lies t$ a num/er $( regi$nal and internati$nal destinati$n in S$uth)ast 3

ast Asia the Middle ast and Australia+ ,he airline revi$usl# has a *$mrehensive

w$rldwide r$ute netw$rk that in*luded $rth Ameri*an ur$ean and A(ri*an *$untries+

6n($rtunatel# e*$n$mi* *risis that swet Asia in 1998 hard hit the nati$n and the airline

($r*ing it t$ trim)d$wn its netw$rk+ As $( Setem/er 2%1% the airline has 75 air*ra(ts in its

(leet in*luding $eing 747)4%%s 1% Air/us %s and 2 $eing 77 series+ ,he airline has

ut a (irm $rder $( 1% $eing 777)%%s 14 Air/us % 2%%s and 5% $eing 77)8%%& $(

whi*h 2 $eing 77)8%%& has /een delivered in 2%1%+ ,he airline has Strategi* usiness

6nit .S60 and 4 su/sidiaries whi*h *$ntri/ute t$ the *$man#s er($rman*e+ ,he S6 is

an indeendents /usiness unit within the *$man# whi*h targets $n $timi!ing res$ur*es t$

ma-imi!e the *$man#s value+ S6 res$nsi/le dire*tl# t$ the /$ards are: &aruda Sentra

Medika ; aviati$n medi*al servi*es &aruda


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*arr#ing 'nd$nesian haEE ilgrims in 195+ 'n 195 the (irst (light t$ ur$ean *$untries

started was made with Amsterdam as the (inal destinati$n+

&aruda 'nd$nesia (leet and $erati$ns underwent large s*ale revitali!ati$n and

restru*turing thr$ugh$ut the 198%s+ ,his r$mted the


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,ISION

A str$ng distinguished airline thr$ugh r$viding @ualit# servi*e t$ serve e$le and g$$ds

ar$und the w$rld with Gnd$nesian h$sitalit#B

$ISSION

,he (lag *arrier $( 'nd$nesia that r$m$tes 'nd$nesia t$ the w$rld su$rting nati$nal

e*$n$mi* devel$ment /# delivering r$(essi$nal air travel servi*es+B

Cor-ora"e ,alue

i *$nsisting $( e%(i*ient 3 e((e*tive '$#alt#


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alied in 'nd$nesia+ ,he regulati$n stiulates all w$rks $( designs manu(a*tures and

$erati$n $( air*ra(t as well as its su$rting aaratus maintenan*e and $ther $erati$nal

de(initi$ns there($re *ertain air*ra(t shall /e reared at a ver# tight and high level $( sa(et#

and se*urit# (ar m$re intense than an# $ther u/li* trans$rtati$n m$des+ evertheless all

th$se menti$ned shall /e related arties a**$unta/ilit# t$ er($rm as /est as $ssi/le+ $th

airlines and auth$ri!ed art# whi*h is general dire*t$rate $( air trans$rtati$n shall suervise

the ali*ati$n+ 't is als$ general dire*t$rate $( air trans$rtati$n that auth$ri!ed t$ issue

*erti(i*ate $( airw$rthiness a *erti(i*ate stating *ertain air*ra(t is (easi/le t$ (l# and /e

reared $r $erata/le+ ,here was a deregulati$n in airlines industr# in 'nd$nesia whi*h

*aused an e-tra$rdinar# gr$wth $( nati$nal airlines industr#+ ,he gr$wth was $utstanding s$

that it has deressed $ther trans$rtati$n m$des+ At the end $( 199%s the num/er $( airlines

was n$t m$re than ten *$manies with t$tal assengers $( ar$-imatel# + milli$ns+

>$wever in mid 2%%9 the num/er $( airlines ($r s*heduled trans$rtati$n has /een

multilied (ive times t$ m$re than 5% *$manies+ ,hen the menti$ned airlines *$manies

$erated at least 489 air*ra(t units with num/er $( d$mesti* assengers e-*eeds 7 milli$ns

e$le+ $wada#s all /ig *ities in 4 r$vin*es in 'nd$nesia have alread# /een served /#

(light r$utes+ ,he raid gr$wth $( air trans$rtati$n in 'nd$nesia is n$t *$in*ided with the

a/sen*e $( r$/lems+ umer$us r$/lems have (re@uentl# arises in line with advan*e $(

trans$rtati$n m$de in this se*t$r and l$ts $( them ertaining with availa/ilit# $( human

res$ur*es as well as air*ra(ts maintenan*e and management+ $ w$nder that a(terwards there

have /een a num/er $( a**identsI (r$m the tragi* in*ident $( the disaearan*e $( $eing

77)4%% =K)K' 574 $wned /# rivate $erat$r Adam Air $n Canuar# 1 2%%7 in MaEene sea

areas West Sulawesi =r$vin*e a/la!e $( &A 2%% &aruda $n Mar*h 7 2%%7 in $g#akarta t$

numer$us (indings $n air*ra(t damagesJ/reakages whi*h were ver# disgra*e(ul+ As a result in

a**$rdan*e with '


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t$ (irm regulati$n .(ull# regulated0 large *aital .*aital intensive0 high te*hn$l$g# law

en($r*ement+ ased $n the Ministerial De*ree $+ 25 $( 2%%8 t$ esta/lish a s*heduled)

servi*e airline re@uires a minimum $( tw$ air*ra(ts and three *$ntr$lled air*ra(ts while

se*ial *arg$ airline re@uires a minimum $( tw$ *$ntr$lled air*ra(ts+ ,h$se re@uirements are

deemed insu((i*ientI there($re "aw $+1 $( 2%%9 stiulates that s*heduled servi*e airlines

shall have at least (ive air*ra(ts and *$ntr$l a minimum $( (ive air*ra(ts whi*h are *aa/le $(

sustaining the *$mmer*ial airline /usiness in a**$rdan*e with the r$utes /eing served+ Gn the

en($r*ement $( "aw $+ 1 $( 2%%9 Airlines having s*heduled servi*e $r n$n)s*heduled

servi*e li*ense ma# *$ntinue their /usinesses ursuant t$ the ermits the# $wn and are

$/liged t$ make adEustment with the new regulati$n n$t later than three #ears ($ll$wing the

ena*tment $( the law+ ?$r legal entities in*luding SG R&G and rivate *$manies that will

al# ($r /usiness ermit the law is e((e*tive as (r$m Canuar# 1 2%%9+

ASEAN o-en s.y -oli!y

'n 2%15 all *$untries in*$r$rated in ASA are e-e*ted t$ $wn internati$nal

air$rts+ 't is an imlementati$n $( HH$en sk# agreement that has /een end$rsed /# ASA

leaders in ASA de*larati$n in G*t$/er 2%% at ali 'nd$nesia+ ,he imlementati$n $(

$en sk# agreement has /een *$ndu*ted graduall#+ 'n 2%15 all *$untries in ASA regi$n

are targeted t$ /e re@uired t$ al#+ ,he $en sk# $li*# esta/lished in ASA de*larati$n

was an advan*ed devel$ment $( *$$erati$n in areas $( se*urit# e*$n$m# and s$*ial)*ultuream$ng ASA states rimaril# in airlines industr#+ ,his den$tes that there w$uld /e an $en

*$metiti$n am$ng airlines *$manies $( ea*h *$untr# in dealing with airlines market within

ASA regi$n+ 'nd$nesia have 151 air$rts whi*h are *$ntr$lled /# ,e*hni*al

Administrati$n 6nit $( the Ministr# $( ,rans$rtati$n .125 air$rts0 SG =,+ Angkasa =ura '

.1 air$rts0 and SG =,+ Angkasa =ura '' .1 air$rts0 $( whi*h 2 air$rts are *lassi(ied as

internati$nal air$rts+ ,here($re 'nd$nesia whi*h $wns the largest am$unt $( internati$nal

air$rts largest regi$n as well as largest am$unt $( $ulati$n .m$re than 2% milli$n e$le0

w$uld /e a great $$rtunit# ($r an# $ther ASA states in sei!ing r$(its /# the *$n*erned

$li*#+ 'n *$maris$n with Singa$re wh$ $nl# has $ne air$rt and Mala#sia wh$ $wns si-

air$rts /ut $nl# tw$ air$rts alread# have /een li/erated the *$m$siti$n that 'nd$nesia

$wns there($re *learl# in*$mara/le with the tw$ *$untriesJstates+ ,here($re /esides taking

int$ a**$unt r$(it $tentials ma# /e a*@uired /# this $en sk# $li*# the 'nd$nesian

&$vernment and d$mesti* airlines *$manies shall /e aware $( the airlines market share

threat within ASA regi$n as well as d$mesti* airlines market share+ 't *an /e said that this

$en sk# $li*# is $ne $( $ssi/le means t$ enetrate airlines market in 'nd$nesia wh$

a*@uires large area and l$ts $( air$rts (a*ilities+ ,his airlines li/erali!ati$n $li*# $r ASA

Gen Sk# =$li*# shall n$t $nl# al# ($r assenger air*ra(ts /ut als$ ($r *arg$ air*ra(t+


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Ministr# $( ,rans$rtati$n has assigned seven internati$nal air$rts that w$uld serve the

tra((i* $( menti$ned *arg$ air*ra(ts+ As ($r assenger air*ra(ts the 'nd$nesian &$vernment

lanned t$ assign $ther (ive air$rts t$ /e li/erali!ed in $rder t$ *$ml# with this $en sk#

$li*#+ ,he (ive air$rts *$n*erned areI S$ekarn$)>atta Air$rt in Cakarta .DK' Cakarta

=r$vin*e0 Kualanamu Air$rt in Medan .$rth Sumatera =r$vin*e0 Cuanda Air$rt in

Sura/a#a .ast Cawa =r$vin*e0 gurah Rai Air$rt in Denasar .ali =r$vin*e0 and

>asanuddin Air$rt in Makassar .S$uth Sulawesi =r$vin*e0+ ssentiall# 'nd$nesian

&$vernment is n$t e-aggeratedl# uneas# $n the ali*ati$n $( ASA $en sk# $li*#+ 't is

/e*ause the gr$wth in the num/er $( assengers $( d$mesti* (lights remains ar$-imatel# at

1% er*ent er #ear+ # the 1% er*ent gr$wth er #ear menti$ned it is redi*ted that in #ear

2%15 the num/er $( d$mesti* (light assengers ma# rea*h 77+ milli$ns+ 'n additi$n /# the

ur*hase $( l$ts $( new air*ra(ts it is /elieved that nati$ns airlines ma# /e *aa/le $(

*$meting with ($reign airlines in sei!ing d$mesti* airlines market shares either $verseas

(light r$utes+ ?urtherm$re *$n*erning d$mesti* airlines the *a/$tage rin*ile w$uld remain

alied+ 't is stiulated that an# airlines w$uld entered inter)*ities r$utes in 'nd$nesia are

re@uired t$ /e m$di(ied as 'nd$nesian *$r$rate /$d#+ ,here($re the re@uired minimum 51

er*ent single maE$rit# $wnershi $( the *$n*erned *$man#s shares shall /e l$*al invest$r+

Oil -ri!e

A**$rding t$ 'nternati$nal Air ,rans$rtati$n Ass$*iati$n .'A,A0 airline industr# isver#sus*eti/le t$ la/$r *$st (uel *$st and /$rr$wing *$st+ >ist$ri*all# la/$r *$st alwa#s

servesas the *$st *$m$nent num/er 1+ >$wever during 'A,A e*$n$mi* /rie(ing in ?e/ruar#

2%1%it was stated that (uel *$st is n$w the *$st *$m$nent that is /igger than la/$r *$st+ 'n

2%%8 (uel *$ntinued t$ /e the largest single *$st item ($r the gl$/al airline industr#+ ased $n

a samle $( 45 maE$r gl$/al assenger airlines (uel reresented a/$ut 2+ er*ent $( the t$tal

$erating *$st u (r$m 27+4 er*ent in 2%%7+ ,hese num/ers are *$nsistent with gl$/al

industr# (uel share s$ this samle *an /e taken t$ /e reresentative+ ,a/le '' sh$ws that in

2%%8 la/$rs share $( airlines $erating *$sts in Asia =a*i(i* was l$wer than in $rth

Ameri*aand ur$e re(le*ting the relativel# l$wer wage level in that regi$n+ >$wever with

relativel# l$wer la/$r *$sts (uel a**$unts ($r a mu*h higher r$$rti$n $( t$tal *$sts .+7

er*ent0 inAsia =a*i(i* than elsewhere+

Te!/nology


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,here are three te*hn$l$gi*al ase*ts that a((e*t the s*heduled airline industr#

namel# internet air*ra(t te*hn$l$g# and air)trans$rt su$rting te*hn$l$g#+ ,he internet has

had a n$ta/le a((e*t $n the airline /usiness+ 'n the 198%s airline revenues were deendent $n

travel agents wh$ rimaril# t$$k a *ut$ut $( ever# ti*ket+ ,his was *$stl# ($r /$th the airlines

and the *ust$mer+ ,he industr# ($und itsel( struggling with a third)art# *$st it *$uld n$t

e((e*tivel# *$ntr$l+ ?$r the *ust$mer the a/ilit# t$ individuall# resear*h neg$tiate and

ur*hase ti*kets dire*tl# has altered the *$metitive e@uati$n /etween /u#er and seller+

e($re the 'nternet ti*ket *h$i*es were rimaril# limited t$ the maE$r airlines and regi$nal

airlines were n$t a/le t$ market e((e*tivel# against the larger *arriers+ >$wever $n*e smaller

*arriers and *ust$mers *$uld *$nne*t e((e*tivel# this s#nerg# *reated a h$st $( new *heaer

travel $ti$ns+ ,he rise $( arti*iating *$nsumer review *$ntent will als$ thr$w a large

s$tlight $n r$du*t and servi*e standard di((eren*es /etween airlines+ =assengers will

devel$ a g$$d kn$wledge $( the servi*e and r$du*t t$ e-e*t $( ea*h airline+ ?$r e-amle

*rew servi*e standards seat it*h meals $((ered drinks $((ered and s$ $n+ With that

kn$wledge and insight the# will make their *h$i*es a**$rdingl#+ Airlines that treat

assengers with indi((eren*e will (ind it mu*h harder t$ retain e-isting assengers and t$

attra*t new $nes+ ,he ($ll$wing te*hn$l$g# *$mes (r$m the air*ra(t suliers+ ,w$ air*ra(t

suliers d$minating the w$rld airline industr# are $eing and Air/us+ $eing is the w$rld

largest air*ra(t manu(a*turer n$t t$ menti$n its su**ess a(ter 1997 in a*@uiring M*D$nell

D$uglas a *$man# ($rmed (r$m a merger /etween tw$ air*ra(t manu(a*tures ; M*D$nnell

and D$uglas+ ,he devel$ment $( air*ra(t manu(a*turing te*hn$l$g# ($*uses $n (uel

e((i*ien*# and (light sa(et# imr$vement+ ,he devel$ment in air*ra(t material has ena/led

the air*ra(t manu(a*turers t$ reali!e their am/iti$n t$ r$du*e (uel)e((i*ient air*ra(ts with

(arther travel)distan*e #et redu*ing *ar/$n emissi$n+

T/e 'CC -/eno0enon

HH"$w *$st (light $r "


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thresh$ld u t$ 1%% er*ent while ($r the middle is 9% er*ent (r$m uer thresh$ld and

th$se r$vide minimum servi*es $r n$ (rill airline $nl# all$wed t$ al# 85 er*ent $( uer

tari(( thresh$ld+ ,he am$unt $( uer tari(( thresh$ld that all$wed t$ *harge is /eing adEusted

with servi*es that r$vided t$ the assenger+ ,he g$vernment gives deadline until Cune 2%1%

t$ the airlines ($r adEusting the uer tari(( thresh$ld a**$rding t$ the new regulati$n t$ its

ti*ket reservati$n s#stem+ Res$nded t$ the g$vernment regulati$n all airlines in 'nd$nesia

will in*rease its tari(( even SriwiEa#a Air ; $ne $( the new *$mer rivate)$wned airlines

*$man# in 'nd$nesia ; rea((irm t$ reare it sel( t$ enter remium *lass and /e*$me

*hallenger $( &aruda+

T/e airlines allian!e

&l$/ali!ati$n has ($r*ed man# *$untries ar$und the w$rld t$ imlement (ree trade

$li*# rivati!ati$n and an $en market as well as an $en sk# $li*#+ ,his has resulted in

(ier*e *$metiti$n in the *$mmer*ial airline /usiness /etween *$untries+


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airlines d$ing well in t$da#s envir$nment are th$se in Asia and "atin Ameri*a where

e*$n$mi* gr$wth has revived the m$st+ ,he weakest markets in ?igure /el$w are *learl#

a*r$ss the $rth Atlanti* and within ur$e where the e*$n$mi* re*$ver# has (altered under

ressure (r$m *$nsumer de/t and still weak /ank /alan*e sheets+ ,ravel has diverged

dramati*all# /# seat *lass as well as market+ *$n$m# travel is within a (ew er*entage $ints

$( its earl# 2%%8 eak levels+ =remium travel remains 17 er*ent /el$w+ ,he *$n*ern had /een

that this was a ermanent shi(t /# /usiness travelers t$ *heaer seats+ ,he g$$d news is that

the de*line in remium aears t$ /e due t$ the unre*edented *#*li*al de*line in w$rld trade

and (inan*ial markets and s$me uturn is evident+ ,he /ad news is that the *#*li*al uturn is

n$t e-e*ted t$ regain the re)HH&reat Re*essi$n trend line given de/t r$/lems in the west+

M$re$ver #ields ma# have su((ered s$me stru*tural de*line+ usiness travelers still want (ull

servi*e $n l$ng)haul /ut *$r$rate /u#ers are n$t reared t$ a# as mu*h+ =remium #ields

have i*ked u /ut are still 2% er*ent /el$w earl# 2%%8 levels+ During 2%%5)mid 2%%9

eri$d servi*e er($rman*e $( 'nd$nesia air trans$rtati$n kee e-erien*ed imr$vement+

um/er $( nati$nal s*heduled /usiness air trans$rtati$n (leets that /eing $erated in*reasing

(r$m 214 units t$ /e*$me 489 units+ ,he am$unt is redi*ted will kee e-erien*ed

signi(i*ant in*rease+ 6 t$ Aril 2%%9 num/er $( d$mesti* assengers rea*hed 41+1 milli$n

e$le and internati$nal assengers rea*hed 4+5 milli$n e$le while ($r *arg$ servi*es u t$

Aril 2%%9 is rea*hed 72+1 th$usand t$n and internati$nal *arg$ rea*hed 4+7 th$usand t$ns+

,he in*rease $n 'nternati$nal assenger am$unt mainl# *aused /# the in*rease $( 'nd$nesian

*iti!en that traveling a/r$ad that /eing m$tivated /# /usiness a*tivities and the (reed $( (is*al

($r $wner $( ta- identi(i*ati$n num/er+ M$re$ver internati$nal /usinessman and t$urist

(a*t$rs that return t$ its *$untr# als$ e((e*ted in line with the in*rease $n internati$nal t$urist

visit t$ 'nd$nesia+ um/er $( internati$nal t$urists are rea*hed +42 milli$n e$le with state

in*$me rea*hed 6SL7+7 /illi$n+ Alm$st 7+5 er*ent $( t$tal th$se internati$nal t$urist are

utili!ed air trans$rtati$n+ ,he in*rease in d$mesti* assenger am$unt is *aused /# am$ng

$thers *aa*it# imr$vement de*reased ti*ket ri*e and the in*rease $n num/ers $( newl#

$en (light r$ute+ ?a*t$r $( ti*ket ri*e is *$nsidered as the determinant (a*t$r as ti*ket ri*eti*ket m$re a(($rda/le in arti*ular $n market segment that /eing servi*ed /# l$w (are and

l$w *$st (lights+ ,he in*rease is $**urred mainl# due t$ "i$n Air kee in*rease its lanes

num/ers (light (re@uen*# and num/er $( r$utes+ Re*entl# it has Eust /r$ught three units $(

A,R 72)5%% t$ servi*e (lights in astern art $( 'nd$nesia+ Se*$nd $siti$n is held /# &aruda

'nd$nesia that (light 8+9 milli$n assengers $r 19+28 er*ent $( the t$tal assengers+ eing

($ll$wed /# atavia Air that (light +1% milli$n assengers $r 14+%2 er*ent $( t$tal+ At this

(irst @uarter $( 2%1% "i$n Air market share is Eumed u t$ 41+9 er*ent+ While &aruda

de*rease slightl# t$ 19+1 er*ent in the meant time $siti$n $( atavia Air is rela*ed /#

SriwiEa#a Air with market share ($r 15+9+ ,h$ugh with di((erent market segments /ut it


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seemed the *$metiti$n am$ng airlines is ($*using $n remium and (ull servi*e segments

su*h as &aruda and $ther airlines that *at*h medium segment is unav$ida/le+ ?$r

internati$nal (light during 2%%9 Air Asia 'nd$nesia is the h$lder $( the /iggest market share

/# trans$rted 4%571 assengers $r 4+9 er*ent+ ,he ne-t $siti$n is held /# &aruda that

a/le t$ (l# 29555 assengers $r 4+1 er*ent the ne-t is "i$n Air $wned market share 14+2

er*ent with assenger am$unt 1217%+ "i$n Air has started its internati$nal r$ute e-ansi$n

sin*e this ?e/ruar# 2%1% /# in*rease (light (re@uen*# t$ Ceddah h$wever ($r tw$ #ears ahead

"i$n Air is still ($*used t$ *$ns$lidate its d$mesti* and regi$nal market+ ,his 2%1% is seemed

t$ /e*$me a #ear where man# l$*al airlines $en internati$nal r$utes+ eside has $ened

r$ute t$ $ular internati$nal destinati$ns su*h as Singa$re Kuala "umur angk$k >$ng

K$ng Ma*au and Ceddah several l$*al airlines were als$ managed ermits ($r (lights t$

aEE u t$ date

&aruda is still the $nl# l$*al airline that trans$rt regular and lus >aEE assenger in

'nd$nesia+ ,h$ugh the g$vernment /ased $n ar$val (r$m h$use $( e$les reresentative

has $ened $$rtunit# ($r rivate airlines t$ enter >aEE trans$rtati$n /usiness there is n$

nati$nal rivate airline that interested+ "i$n Air as $ne $( tw$ 'nd$nesia airlines that $ssessed

ermits t$ land in Saudi Ara/ia is n$t #et sh$wn its seri$us interest t$ enter the lu*rative

/usiness+ "ast #ear &aruda trans$rted >aEE ilgrims (r$m em/arkati$n $( anda A*eh

Medan =adang =alem/ang S$l$ alikaan anEarmasin Makassar Sura/a#a and Cakarta

e-*et West Cava+ 'n 2%%8 &aruda trans$rted %2 (light gr$us with num/er $( 259%%%

ilgrims+ While in 2%%9 &aruda trans$rted %% (light gr$us with num/er $( ilgrims

in*reased t$ 24%%% ers$ns+

Su--ly of -ilo" an o"/er s.ille -ersonnel

,he raid in*rease $n num/er $( airlines and lanes in 'nd$nesia has *aused in*rease

demands ($r r$(essi$nal ers$nnel su*h as il$t te*hni*ian steward and s$ ($rth+


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has $/tain $erati$nal revenue ($r R+ 194+19 /illi$n $r de*rease 7+19 er*ent (r$m the

revi$us #ear+ ,his *$nditi$n is ($ll$wed /# de*rease $n $erating e-enses ($r 5+4 er*ent

.due t$ de*rease $n ri*e (uel until 2 er*ent0+ Gn the $ther hand during the *urrent nan*ial

#ear *$man# has earned $ther in*$mes ($r R+ 284+%1 /illi$n s$ that the *$man#s r$t

in*rease 18+82 er*ent t$ /e*$me R+ 1%%9+28 /illi$n+ 'n terms $( ta-es during #ear 2%%9

*$man# has aid ta-es ($r R+ 1779+2 /illi$n $r in*rease 99+4 er*ent *$mared with the

revi$us #ear+ ?r$m e@uit# $int $( view during #ear 2%%9 *$man# has e-erien*ed

de*rease $n assets value ($r 4+ er*ent *$mared with the revi$us #ear+ ,his a*hievement is

de*lining i( *$mare t$ the gain $( assets in*rease ($r 27+7 er*ent in #ear 2%%8+

&u0an Resour!e

'n $rder t$ a*@uire e-*ellent eml$#ees that *aa/le $( *$ndu*ting e((e*tive and

$timal r$le at vari$us ke# $siti$ns &aruda 'nd$nesia is *$n*entrating $n human *aital

management ar$a*h /# ($*using $n ers$nnel as valua/le assets ($r &aruda and n$t merel#

as a su$rting (a*t$r $r an availa/le res$ur*e+ a*h eml$#ee is re@uired t$ ut an

e-*ellen*e $n whi*h in*ludesI kn$wledge skill and w$rking attitude there($re the# ma#

enhan*e r$du*tivit# and er($rman*e either in w$rking envir$nment and individual li(e

generall#+

&aruda 'nd$nesias *$mmitment $n learning r$*ess and devel$ment $( eml$#ees

are reNe*ted in the attendan*e rate at &aruda 'nd$nesia ,raining


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&arudas strategi* $/Ee*tive learning r$*ess is designed as a derivati$n $(&arudas strateg#

and /usiness lan whi*h am$ng $thers *$ndu*ting integrati$n $( ?l#)>i value $rder int$ the

s#lla/us $( the e-isting training r$gram+ Gne $( surve# $/Ee*ti$ns is t$ ensure that the

remunerati$n a*kage in &aruda 'nd$nesia is still *$metitive there($re &aruda ma# /e

remain a *h$sen $ne ($r r$(essi$nals wh$ have $tentials and interested in E$ining $r remain

w$rking with &aruda 'nd$nesia+

O-era"ion

&aruda 'nd$nesia manages a Neet $( 7% air*ra(ts in De*em/er 1 2%%9 whi*h

*$nsisted $( 7 air*ra(ts whi*h are $erated in main /rand .&aruda 'nd$nesia0 Nights and

three air*ra(ts $erated in


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internati$nal Nights r$ute netw$rk and the num/er $( Eum/$)si!e air*ra(t whi*h served ($r

l$ng haul r$utes su*h as t$ Caan K$rea


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SOT

'n $rder t$ identi(# a strategi* ni*he that the $rgani!ati$n might e-l$it it is needed t$

anal#se the SWG, $( &aruda 'nd$nesia+

S,R&,>

o &$$d Servi*es

'


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% il$ts are


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o &l$/al airline industr#

=ri$r t$ Setem/er 11 the airline industr# was alread# in a d$wnturn+

&r$wth in revenue)assenger)kil$meter was raidl# de*lining+ And a dr$ in

(irst)redu*ti$n in revenues an ima*t m$st r$n$un*ed in the 6nited States+

=$st)Setem/er 11 the situati$n w$rsened+ ,ravelers *$ntinuing *$n*erns

a/$ut ers$nal sa(et# *$r$rate drives t$ redu*e *$sts and an in*rease in the

hassle (a*t$r all warked t$ dis*$urage assenger (r$m air travel+o &$vernment

,he g$vernment regulati$n a/$ut re(eren*e tari(( that is t$$ l$w . SK

DirEen =erhu/ungan 6dara $+ 50o


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assenger tari((is set uer limit an airline *an alied ($r its e*$n$m# *lass assengers

while internati$nal assenger tari(( are determined /# g$vernment /illateral agreement+

,$ hel determine $timum ri*ing the airline uses revenue management s#stem+

,he s#stem all$w the *aa*it# $n /$ard ea*h air*ra(t t$ /e divided int$ 9 e*$n$m# *lasses .>

Q K " M with > /eing the m$st a(($rda/le /eing the m$st (le-i/le0 and $ne

e-e*utive *lass .


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=r$m$ti$n reresent all *$mmuni*ati$n used in marketla*e in*luding advertising

u/li* relati$n and slaes r$m$ti$n+ 'n the advertising garuda 'nd$nesia is kn$wn t$ have

r$du*ed attra*tive *$mmer*ials engaging ride side $( *ust$mer in ea*h $( its ads+ Di((erent

t#es $( media are /eing used /# the airline in*luding , 3 Radi$ ewsaer and

Maga!ine as well as $utd$$r media su*h as /ill/$ard+

As ($r the sales r$m$ti$n the airline tail$red se*ial r$m$ti$n a*kage ese*iall#

in new r$utes+ 'n additi$n the airline als$ has annual travel (airs and ratners with *redit *ard

issues t$ give dis*$unt as well as $ther r$m$ti$n r$gram+

(EY ISSUES

Garua Inonesia Before Co0-any Turnaroun

?$r several #ears ag$ &aruda 'nd$nesia was an airline that seemed t$ /e $n a ath $( *$nstant

tur/ulen*e+ ,he airlines (inan*ial er($rman*e is deteri$rating as a result $( de/t)ridden

ine((i*ient $erati$ns and *hr$ni*all# *$rruti$n ra*ti*es+

>aving revi$usl# served e-tensive internati$nal netw$rk that in*ludes a num/er $( *$untries

in ur$e and $rth Ameri*a the airline is ($r*ed t$ trimmed wingsan+ Aging (leet and

in*reasing servi*e level e-e*tati$n $( ($reign *ust$mers made the airline una/le t$ *$mete

in the internati$nal market+

'n regi$nal and d$mesti* market deregulati$n $( airline industr# and rev$luti$n $( "$w)


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(r$m 7+541 trilli$n the revi$us #ear+ et r$(it was R77+9 /illi$n+ &aruda /egan t$ re$en

s$me $( the 17 internati$nal r$utes that had /een *l$sed in the wake $( the Asian (inan*ial

*risis and se*ured a leasing deal ($r seven $eing 77s t$ rela*e l$st *aa*it#+

,he Asian (inan*ial *risis *ut d$mesti* assenger *$unts .and airline (leets0 in hal( andgr$unded $ne l$*al *arrier Semati Air+ ,he 'nd$nesian g$vernment res$nded /#

deregulating the air market+ A hal()d$!en start)u airlines aeared in the d$mesti* market in

2%%% and 2%%1 adding t$ the hand(ul $( esta/lished airlines+

A(ter the Setem/er 11 2%%1 terr$rist atta*ks $n the 6nited States s$me ur$ean

g$vernments issued travel advis$ries warning t$urists t$ av$id 'nd$nesia whi*h was h$me t$

s$me small /ut highl# v$*al radi*al 'slami* gr$us+ >$wever &aruda was a/le t$ h$ld $n t$

r$(ita/ilit#+ 't $sted a r$(it $( L% milli$n .R5% /illi$n0 in 2%%2 $n sales $( a/$ut L5+

/illi$n+

=lans ($r rivati!ati$n were still alive th$ugh de(erred till 2%%+ 'n August 2%% &aruda

ann$un*ed lans t$ sin $(( its maintenan*e /usiness with 275% related eml$#ees as well

as $ther n$n)*$re units as art $( the rivati!ati$n rearati$ns+

Stes taken in*luded returning several e-ensivel#)leaded air*ra(t reneg$tiating and

severan*e $( *$ntra*ts *l$sure $( n$n)r$(ita/le internati$nal r$utes a/$liti$n $( the dis*$unt

ti*ket s#stem streamlining air*ra(t t#es imlementing a (leet assignment $li*# and a*hange in $rientati$n (r$m marketB t$ r$du*tB+

'n detail the *$ns$lidati$n r$gram sin*e 1999 until n$w are listed /el$w+

1333

Re/a4ili"ion Progra0+ A(ter su**ess(ul *$ns$lidati$n in 1999 &aruda *arried $ut a

reha/ilitati$n r$gram as *arried $ut using (ive enhan*ement r$grams namel# $erati$ns

servi*e and revenue enhan*ement as well as e((e*tive *$st management and e((e*tive

management+ ,hr$ught the reha/ilitati$n r$gram &aruda has su**eeded inraising its $n time

er($rman*e levels seat l$ad (a*t$r #ield $sitive $erati$ns and *ash (l$w as well as

in*reased r$(its+

)***


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In!rease Seri!e an Co00uni!a"ion+ ,his r$gram was *arried $ut /# &aruda t$ raise all

ase*ts $( the airlines servi*e and at the same time *$mmuni*ate it t$ general u/li* as art

$( the airlines e(($rt t$ imr$ve u/li* er*eti$n $( /$th the servi*e and image $( &aruda+

)**1

Effi!ien!y Progra06?$*used $n in*reasing e((i*ien*# in all ase*ts $( &aruda a*tivities this

r$gram seeks t$ raise $rgani!ati$nal r$(ita/ilit# in an $timal manner+ &aruda are a*hieving

this /# /uilding *$meten*es and al#ing e((i*ien*ies in all ase*ts $( *$man# er($rman*e

su*h as $rgani!ati$nal e((i*ien*# administrati$n $erati$ns (inan*e and r$*urement

thr$ught the *reati$n $( an e((i*ient $rgani!ati$nal stru*ture w$rk meth$ds s#stem

andr$*edures as well as nurturing $( a $sitive attitude+

)**1

E2-ansion an Deelo-0en" Progra0+ ,hr$ught this r$gram &aruda will seek t$ e-and

its r$utes servi*es and r$du*ts as well as its (leet+ 't intenti$n is n$t $nl# t$ /e*$me the

d$mesti* market leader /ut als$ t$ reare ($r *$metiti$n with the internati$nal market

la*e and rivati!ati$n+

)**7

Pria"i8a"ion+ ?$ll$wing the hase given a/$ve &aruda e-e*ts t$ *arr# $ut rivati!ati$n

and /e*$me a u/li* *$man# in 2%%+

Garua Inonesia Be/in E0irsya/ Sa"ar 'eaers/i-

'n 2%%4 &aruda 'nd$nesia terminated all ur$ean servi*es with the latest /eing Amsterdam

$n $vem/er 2%%4 as it *$ntinued t$ e-erien*es l$sses in the se*t$r+ ,he airline als$

terminated its servi*e t$ Se$ul in Setem/er 2%%4+ et it *$ntinued t$ /leed nett l$ss u t$ R

19 /illi$n /# the end $( Mar*h 2%%5+ 71F $( the airlines d$mesti* r$utes are l$sing m$ne#

in Canuar# 2%%5 in*reasing u t$ 85F in the ne-t m$nth+ 5F $( internati$nalr$utes are als$

l$sing m$ne# u t$ 91F the ne-t m$nth+ Meanwhile its S6


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restru*turing r$du*t andservi*e imr$vements as well as rearati$ns t$ rivati!e thr$ugh

an 'nitial =u/li* G((ering .'=G0 t$ dire*t the ' and *$r$rate /rand re(reshment+

'n 2%%9 &aruda 'nd$nesia is trans($rming again with the new l$$k new t#$grah# with a

*lean and m$dern l$$k *reating *$mlete harm$n# with timelessness $( &aruda /ird i*$n

whi*h m$ve ever higher insired /# natural ri*hes $( 'nd$nesia as seen in natures wings in

green $( alm etal $( (l$wer water rile and wing $( /ird the essen*e $( new *$l$r

alette+ ,his entire /est seen in (leet revitali!ati$n with new liveries and newl# *a/in interi$r+

=art $( its ride &aruda 'nd$nesia


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CASE STUDY GARUDA INDO MAKALAH .doc

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