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Low Cost Airlines in Indonesia

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Low Cost Airlines in Indonesia
ANNEE SCOLAIRE : 2010/2011
Date :Avril 13, 2011

DEPARTEMENT GESTION DROIT FINANCE
PROGRAMME / CURSUS MiM1 – TRONC COMMUN
INTITULE MODULE The management of Tourism
Nom du PROFESSEUR Djoehana Wiradikarta Anda

Low Cost Airlines In Indonesia

Group Member:
VOUSEMER Sandy
WANG Liao
Xue Qiujing

Table of Contents
I. General introduction of low cost carrier 3
1. Definition 3
2. History of low cost carrier 3
3. Business Model 4
a. Reducing operation cost 5
b. Simplifying in-flight services 6
4. Trends in the industry 6
a. Differentiation 6
b. Long distant low cost carrier 7
5. Criticism 7
II. Why is Indonesia such an important market? 8
III. Low Cost Airlines That Fly To and/or In Indonesia 8
1. From Europe 8
2. From Asia and Oceania 10
a. Overview 10
b. Examples --- 7 selected airlines 11
1) AirAsia 11
2) JetStar 12
3) Tiger Airways 13
4) Cebu Pacific Air (banned in EU) 14
5) Firefly 15
6) Pacific Blue 15
7) Viva Macau 15
c. Conclusion 15
c. Indonesian Low Cost Airlines 16
1. Overview 16
2. Presentation of each airline 18
a. AirAsia Indonesia 18
b. Citilink 19
c. Lion Air 19
d. Batavia Air (a.k.a. Metro Batavia) 20
3. Problems of Indonesian low cost airlines 20
a. Safety Issue 20
b. Appendix --- List of air carriers banned in the European Union 22
Bibliography 23

Low Cost Airlines in Indonesia
I. General introduction of low cost carrier
1. Definition
Low cost carrier (also known as no-frills, discount or budget airline/carrier) is basically an airline that generally offers cheaper flight tickets and less comfort compared to traditional airlines by using a different business model from traditional airline business model.
In short, low cost airlines’ priority is to reduce the operational cost to make up the loss in revenue generated by the reduced price. The reason why this type of airlines is also called no-frill



Bibliography: http://en.wikipedia.org/wiki/Low-cost_carrier http://www.eurocheapo.com/flights/articles/history-budget-airlines.html http://en.wikipedia.org/wiki/Available_seat_miles http://www.budgetairlineguide.com/low-cost-airlines-history http://www.airasia.com http://www.thejakartapost.com http://www.wikipedia.fr/ http://www.europa.eu http://www.flylowcostairlines.org http://www.asiatraveltips.com/news10/2710-TigerAirways.shtml

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