COST INDEX AND FUEL TANKERING POLICY OF THE AIRLINES IN INDONESIA
Authors:
Suharto Abdul Majid And Charles An
Abstract:
Facing the highly competitive situation among airlines in Indonesia today, and at the same time the price of aviation fuel (avtur) and the exchange rate of USD against IDR are very high, airline companies need to make efficiency in sustainable ways so as to maintain their airline business. The aim of this study is to analyze the extent of efficiency or cost saving the airline companies in Indonesia can do now by using the concept of fuel tankering due to the difference of fuel price at the origin airport and the destination airport as well as the use of cost index. The research method used here is the descriptive explorative method with time series data. The result of research which is based on fuel tankers approach and cost index calculation shows that airline companies can make very significant cost savings every month and every year.