Low Cost Carrier in Airlines: In Terms of Cost Perspective

DOI

10.2991/aebmr.k.200415.017How to use a DOI?

Keywords

low cost carrier, airline, cost

Abstract

This study aims to determine the implementation of the LCC airline in reducing and minimizing costs accrued by the company and the impact of the implementation of LCC. In order to achieve this goal, the data were collected using interview techniques with key informants and secondary data analysis. The type of research used is descriptive exploratory method aimed to explore the implementation of LCC on airlines. Data sources used primary data obtained through interviews with informants from employees of PT. Citilink and PT. Garuda Indonesia, while secondary data were collected from information presented on the website and other related information and reports of LCC on the internet. The results of this study indicated that there are at least 3 forms of reduction / minimization of flight costs, namely the first minimization at operational per service / per flight. Second, cost minimization in the overall operations of the company. Third, minimization with government policy facilities related to the rules regarding flights and fixed rates. These results are evidence by Cost per unit for production (cost per Available Seat Kilometer/CASK) of FSC airline was 6.16 US¢, meanwhile the cost of LCC airline was just 0.06 US¢ for easyJet, Air Asia had 3.07 US¢ and Citilink had the highest position compared to easyJet and Air Asia for 4.71 US¢. Therefore, the implementation of LCC has the effect on the opening opportunities for the middle and lower classes to choose flights as a mode of transportation and the presence of LCC can have a positive impact on the economy, especially in the tourism sector.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Elsya Panduwinasari
AU  - Aang Afandi
AU  - Hesti Wahyuni
PY  - 2020
DA  - 2020/04/17
TI  - Low Cost Carrier in Airlines: In Terms of Cost Perspective
BT  - Proceedings of the 1st Annual Management, Business and Economic Conference (AMBEC 2019)
PB  - Atlantis Press
SP  - 84
EP  - 89
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200415.017
DO  - 10.2991/aebmr.k.200415.017
ID  - Panduwinasari2020
ER  -