Only Two? Who’re they?

Rivalry among existing organization

Difficult? Threat Of New Entrance

Train? Threat Of Substitute Products

Business Analysis

Bargaining Power Of Customer

Bargaining Power Of Supplier

In the last decade, air transport has grown by 7% per year. Traveling
for business and leisure purposes is growing strongly around the
The most dynamic growth centers is in the Asia Pacific region, where
world. Scheduled flights carry 1.5 billion passengers years ago. In the
World rapidly expanding trade and investment are coupled with increasing
long haul market, the large aircraft such as the Boeing 747 is very
domestic prosperity.
convenient and affordable for people to travel long distances for new
and exotic destinations.

Strategy Analysis Overview Domestic air passenger volumes have posted double-digit growth in
the last five years.
Cost leadership Indonesia currently has 61 scheduled and unscheduled commercial
In 2013, air passenger growth reached 22.3%. A year later, the figure
airlines. The country is ranked as having the second-fastest growing
Indonesia grew by 16.7%. In 2015, Indonesian air passengers recorded a 13.1%
Competitive Strategy aviation industry in the world after China in terms of aircraft order and
increase.
business value.
Meanwhile, international air passenger volumes grew by around 8% in
2015 as more local and foreign carriers offer international flights.

In 2017 Indonesia's Transportation Ministry allowed the opening of 83 (1) to make the remote areas of Indonesia less isolated, and
There are two reasons why the government encourages the opening
Recent Updates new flight routes (commercial civil flights), consisting of 58 domestic
of new routes:
routes and 25 international routes. (2) to strengthen inter & intra regional transportation.

Firstly, the Indonesian government sets an airfare price ceiling (to

protect consumers' purchasing power). Often, however, the
Product Differentiation government is slow in raising the ceiling. When operational costs have
The Industry risen, for example due to rising prices of jet fuel, then airlines are
Strength and weakness plagued by limited profit (or even losses) as they cannot set higher
airfare prices.

Secondly, the increase in flights puts pressure on the capacity at

The Challenges several big challenges in Indonesia's aviation industry
airports. For example, air passenger capacity, the number (and length)
of runways, navigation equipment, jet fuel depots, and the hours of
airport operations. When airports cannot handle the amount of flights,
CONGESTION then there will occur inefficiencies that can even be dangerous.

the Indonesian government to set up a new aviation agency with the

task of monitoring the conditions at the airports around the country,
including tariffs, infrastructure, connectivity, safety issues, and more.

Opportunities and Threat Corporate Strategy Analysis Garuda Indonesia 144 Citilink 52

Lion Air 110 Wings Air 48 Batik Air 33

AIR TRANSPORT SAFETY Susi Air 50

The Players
Sriwijaya 46

AirAsia 27
FLOOR PRICE VS. SAFETY
Express Air 14
ASEAN OPEN SKY POLICY AND INDONESIA’S PARTICIPATION

Proportional Basis?

Comission Basis? Code Share Noise from accounting rules

Purchasing Basis?

Fuel? Overview of Factors Influencing Accounting Quality

Disaster? Forecast errors

Crisis?

Rationale? Manager’s Accounting Choice

the optimization of aircraft utilization?

and efficiency of operating Identify key Accounting Policies

expenditure?

property, plant, and equipment transactions including choosing aircraft

lease method, whether they choose financial lease or operational Accounting Analysis
lease, including selling and lease back?
Assess Accounting Flexibility
Expense?

Revenue?

How to deal with the strategy? Evaluate Accounting Strategy Six Steps in Accounting Analysis

Evaluate the Quality of Disclosure

A quasi-reorganization is a relatively obscure provision under U.S.

GAAP which provides that under certain circumstances, a firm may
eliminate a deficit in its retained earnings account by restating assets,
liabilities, and equity in a manner similar to a bankruptcy. A firm's Kuasi Organisasi? Identify Potential Redflags
stockholders must agree to allow the accounting change, which
essentially resets the firm's books as though a new company had
incurred the assets and liabilities of the old firm.

Undo Accounting Distortions