| Summary: | In the recent tight airlines competition, the term of effective and efficient
are commonly used by the airlines. This is due to by implementing these two
terms, then they will have an impact on organization and company, particularly on
airlines company.
Many changes should be carried out specifically on airlines company
management that still face inefficiency and ineffectively related to cost. As a
business organization, airlines company should make efforts to encounter the fuel
(avtur) price increase issue since 2004 and in present time, political issue in
Middle East and North Africa region.
PT. Sriwijaya Air, as a one of the airlines company or air service
transportation provider, should decide precisely based on already exists initiatives
to improve revenue and profit and make them sustainable regarding to avtur price
increase. The avtur price is a major component that directly has an impact to
operational cost and tariff. This becomes increasingly important because political
issue on Middle East is a critical one.
PT. Sriwijaya Air should start its initiatives to decide type of aircraft that
economical and can compete with competitor in airlines industry. They should
also implement right strategy in accordance with target market or market segment
to determine tariff for obtaining high yield.
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