THE IMPLICATION OF AIRLINES DEREGULATION IN THE END OF THE 20TH CENTURY ON INDUSTRIAL DEVELOPMENT OF COMMERCIAL AIR TRANSPORT SCHEDULE IN INDONESIA

DOI

10.2991/grost-17.2018.29How to use a DOI?

Keywords

Commerce Air Transport, Competition, Airlines Deregulation.

Abstract

Airlines deregulation is intended to remove state-sponsored protectionism, leading to economic liberalization so that entry conditions are easy and cheap, but the results were mostly disappointing. The research used a method of Structure, Conduct and Performance (SCP method). The results of this study indicate that the market structure of oligopoly is better than before deregulation. Conduct, there is price competition so tariff becomes cheaper. The performance of airlines is also getting better as shown by the increasing of production efficiency. Significant reversal of market share before and after deregulation of comparison between SOEs and POEs from 75.40%: 24.60% to 34.75%: 65.25%. Economic regulation by the government dilemma in addition to causing differences of views between the interests of producers and the interests of consumers, also the industry becomes more concentrated on the main players, and serves as a tool pricing and prevent entry of new competitors. Tribulation increased : increased number of flight delays, skyrocketing prices during busy times, the diffi-culty of getting tickets happens at the last minute and so forth, fewer airlines and routes, airport density.

Copyright

© 2018, 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  - Tiarto Tiarto
PY  - 2017/11
DA  - 2017/11
TI  - THE IMPLICATION OF AIRLINES DEREGULATION IN THE END OF THE 20TH CENTURY ON INDUSTRIAL DEVELOPMENT OF COMMERCIAL AIR TRANSPORT SCHEDULE IN INDONESIA
BT  - Proceedings of the Conference on Global Research on Sustainable Transport (GROST 2017)
PB  - Atlantis Press
SP  - 335
EP  - 346
SN  - 2352-5401
UR  - https://doi.org/10.2991/grost-17.2018.29
DO  - 10.2991/grost-17.2018.29
ID  - Tiarto2017/11
ER  -