THE INDONESIAN JOURNAL OF

BUSINESS ADMINISTRATION
Vol. 2, No. 14, 2013:1706-1717

PROPOSEDSTRATEGYIMPROVEMENTFORCITILINKAIRLINETOINCREASE
MARKETSHARE

AdhytiaPradikthaDarmawanandHarimuktiWandebori
SchoolofBusinessandManagement
InstitutTeknologiBandung,Indonesia
adhytia.p@sbmitb.ac.id

AbstractAirline industry is one of the areas of business that affected by economic growth in Indonesia.
According to Ministry of Transportation, the number of domestic and international passengers has increase
from2009untilnow.Meanwhile,accordingtoMinisterofTourismandCreativeEconomy,Indonesiaisthethird
in the world in middleclass society people after China and India. This conditions stimulate grow in Low Cost
Carrier (LCC) airlines industry. Citilinkis alowcost airlineheadquartered inJakarta,Indonesia. It was
establishedin2001asalowcostsubsidiaryofGarudaIndonesia.ThecompetitionamongLCCaviationisvery
competitiveinIndonesia.Nowadays,featuresgivenbyeveryLCCairlinesismoresophisticated,thiscondition
impact Citilink service to be more perfect both in tangible and intangible part for increasing customer
satisfaction.The focus of this thesis is to find a solution that can help Citilink to increase the market share.
AuthorgatheradatabasedoninterviewwithCitilinkmanagements,collectingquestionnaireaboutperception
and expectation of Citilink by consumers, and analyzing business situation (external analysis and internal
analysis).TheanalysisshowsthattherootoftheproblemthatcausedthelostmarketshareofCitilinkAirlineis
the low level of customer satisfaction, human resources that existed at Citilink Airlines.To solve the business
issuefacedbyCitilink,authorproposesimprovementstrategyformulationbasedonthedatagathered.Some
service strategies recommendations are proposed to respond these conditions. The resulting strategy is to
improve the quality of supporting crew as human resources and optimizing use of technology advance to
increaseefficiencyinCitilinkactivity.

1. Introduction
Citilink is subsidiary of Garuda indonesia as low cost carrier, set up to operate shuttle services
between Indonesian cities. Citilink provides a lowcost air service to many exciting destinations in
Indonesia.CitilinkaredynamicconceptfromGarudaIndonesia.July5,2012Citilinkinauguratedthe
Air Operation Certificate acceptance certificate (AOC) from the Ministry of Communications of the
RepublicofIndonesia.ThiscertificatemarksanewerainthemanagementofchangeCitilink,which
hadpreviouslybeenunderthemanagementofPTGarudaIndonesiaTbk.,tobeadynamicandself
management .Management of Citilink focused strategy at higher seat load factor, higher aircraft
utilizationrate,andlowerdistributioncost(efficiency).Citilinkmaintainsgoodoperationalexcellence
andflightsafety.Citilinkhas21aircraftwhichoperatingto16citiesofIndonesia.Themarketshareof
CitilinkAirlinesstillverysmallespeciallycomparedtotheLionasmarketleaderCitilinklosingmarket
sharearound19%25%,asmentionedbeforeLCCaviationmarketgrowthinIndonesiaisonaverage
18%peryear.ThislosingmarketsharewouldbecomeacriticalproblemforCitilinkiftheynotmake
preparationforitintightencompetitionofLCCaviation.

2. BusinessIssueExploration
A. ConceptualFramework
ConceptualFrameworkiscreatedasareferencetotheconceptofstrategymakingframeworkthatis
usedtofindtherootofcausesandfindthesolvingproblemofthecompanynowadays:itislosingof
market share. With reference to the literature review, the field observation and experience then
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anJournalofBu
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No.14,2013:17
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autho
or can creatte make a structure
s
fraamework forr strategy fo
ormulation. Figure 1 illu
ustrated thee
ConceptualFrameworkwhich
hisacombin
nationofsevveraltheoriess.

Figurre1.Concepttualframework

B.M
MethodofDa
ataCollectionandAnalyssis
1. In
nternalAnalyysis
In
nternalanalyysisprovidessanexplanattionofintern
nalfactorsth
hatexistinC
CitilinkAirlinees.
a. B
Bussinessstra
ategy
A
Accordingto IrelandHoskkissonHittth
hepurposeo
ofBusinessle
evelstrategyyistocreateedifferencess
b
between the
e firms posiition and th
hose of its competitors.
c
To position
n itself diffeerently from
m
competitors,afirmmustdecidewhettheritintend
dstoperform
mactivitiesd
differentlyortoperform
m
d
differentactivities.Nowaadays,firms usedactivityymaptosho
owhowtheyyintegratettheactivitiess
they perform
m. Activity map
m is a too
ol to identiffy firms com
mpetitive ad
dvantages. Activity
A
map
p
oposition to the activitiees of firms that enable to deliver better
b
valuee
connect firms value pro
p
propositionaamongcompetitors.

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Figure2.ActivityMap

Citilink has integrated its activities as the foundation for their cost leadership strategy. To reach
business level strategy as cost leadership, Citilink makes efficiency in every activity (efficiency
strategy). As shown in figure 2, Citilink Airlines has configured the activities to support their cost
leadershipstrategybutsomethemnotoptimizedimplemented.

b. ResourcesAnalysis

According to Thomas l Wheelen resources are an organizations assets and are thus the basic
buildingblocksoftheorganization.Resourcesincludetangibleassetsandintangibleassets.
Increasingunpredictabilityandtransformationsincompetitiveindustryandtheglobalizationof
markets require managers to formulate and implement efficient and effective strategies which
allow them to respond to changes in order to become competitive and remain so. In other
words,thecorrectuseofinternalresourcesandtheircapabilitiesorthesynergyofresourcesi.e.
alliancesmayhelptomodifytheindustry'sstructuretoitsownadvantageandoutperformthe
competition(orcreatesustainablecompetitiveadvantage).
To proposes strategy formulation, author need to discover Citilink resources.Correct use of
internalresourcesandcapabilitiesorthesynergyofresourcesmayhelptomodifytheindustry's
structuretoitsownadvantage

Table2.1Citilinkresources
Rare
Inimitable
Nonsubstituable
Resources Attribute
Valuable

Yes (Airbus and Boeing include better

No (other ailines can
Choosing supplier manufacturer
fuel efficiency, more cabin space, and
No
choose same aircraft
No

better cabin technology)

supplier)
Cooperation with trusty travel agent
Yes
No
No
No
Yes/No (every company No (but difficult to
Using technology advance to facilitate
Yes (create efficiency in Citilink activity
customize technology
No
supporting and primary activity
imitate)
depend on their needs)
Managerial capabilities
Yes
Yes
Difficult
Difficult

Supporting crew
No
No
No
No
Image in punctuality
No
No
No
No

100 % Safety record

Yes
Yes
No
Yes/No
Number of Airplane units
No
No
No
No

Yes/no (competitive
Innovation in Marketing Campaign
Yes
Yes
No
parity)
Yes/No (competitor offer

Variant Value Added Service

Yes
No
No
same VAS)
Yes/no (competitive
Innovation in product development
Yes
Yes
No

parity)

Physicalresources
Almost throughout the city especially in the big cities, Citilink has ticket counter (stand or mobile)
andalsoheldcooperationwithtravelagentalloverthecity.Citilinkhasonly21aircraft(14Airbus
and 7 Boeing) as of February 2012. These advantages using Airbus and Boeing include better fuel
efficiency,morecabinspace,andbettercabintechnology.
Technologicalresources
Citilink use advances in technology to reduce costs. The application of this technology is used in
promotion&advertising,operationsandsupportingactivity.Butinfacttherearesomefailuresinthe
use of the system, especially for flight scheduling and crew scheduling Citilink need to create
improvementforthisapplication.
Humanresources
Most of the management of Citilink derived from Garuda Indonesia. Because of that management
Citilink can be said very experienced in Aviation industry. With the experienced of management
Citilink, Citilink becomes easier in determining policies that concerned with the operational and
supporting activities of Citilink. In addition to the experienced management, it helps in improving
capabilitiesofallCitilinksworkerelements(viatransferknowledge).
Citilinkhasexperiencedpilots,therecruitmentprocessforthepilotrequiresspecialspecifications,so
the pilot who already in Citilink is experienced and reliable pilots. After doing the recruitment
process,Citilinkalsoprovidestrainingforpilotssothatexistingsafetyrecordcanbemaintained.In
other hand, Citilink main problem comes from the human resource, where the supporting crew of
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No.14,2013:17
7061717

Citilin
nkcausepro
oblemsonth
heoperationaalactivityan
ndgiveabad
dimagetoth
hepunctualiityofCitilinkk
Airlin
ne.
Re
eputationalrresources
Citilin
nk is known
n as a subssidiary of Garuda
G
Indon
nesia, which
h is the beest airline in
n Indonesia..
AddittionallyCitilinkalsohavee100%flighttsafetyreco
ord(noaccidents).Citilinkisdevelopingeffectivee
partn
nershipwith thesupplierrs.Goodrelaationshipsw
withsupplierssledtotime
elinessinsup
pply(donott
disturb the proce
ess of operaational Citilin
nk), prioritized by suppliers, supplieer providing appropriatee
oned beforee Citilink haas a bad im
mage about punctualityy in the peerception off
price. As mentio
nesiansocietty.
Indon
Innovationressources
nk has an ad
dvantage in creates marketing proggram, Citilink launched creative and
d innovative
e
Citilin
markketing prograams so that people can
n get information about Citilink easily. For exam
mple Citilinkk
provide a good blog that co
onnects Citilinkers (com
mmunity of citilink)
c
with someone who
w did nott
recoggnizeCitilinkbrand.

c. Va
alueChainAnalysis
AcccordingtoTThomasLWh
heelenValuechainisaalinkedseto
ofvaluecreatingactivitieesthatbegin
n
with basic raw
w materials coming from
m suppliers, moving on to
t a series of
o value added activitiess
oducingandmarketingp
productsorsservice,and endingwith
hdistribution
ngettingthee
involvedinpro
nalgoodsforrcustomer.
fin

Figure3.Valuech
hainAnalysiss

P
Partofinboundlogistic
Citilin
nk faces pro
oblem in creew schedulin
ng optimizattion,there arre some creews that wo
ork overtimee
whileetheotherh
handthereaaresomecreewsthatworrkslacklyandlackofcap
pabilities.Th
hiscondition
n
leadsstoprobleminoperationalprocess (flightsdelayy).Citilinkcrreatesagoodrelationshipwiththeirr
suppliers(Pertam
mina,aircraftmanufacturrer,AirportaandAirtrafficccontrol).
nk provides passenger service
s
system to facilitaate the conssumer in maaking ticket reservationss
Citilin
and sselecting pro
oduct featurres that pro
ovided by Ciitilink Airline
es. It can be
e concluded in inbound
d
logisttic activity, Citilink
C
creatting value th
hrough good
d partnership
p with supp
pliers and faccilitate theirr
consu
umerwithpaassengerserrvicesystemss.
O
Operation
Citilin
nk provides ticket countter operation
ns to accommodate con
nsumers thatt want to bu
uy tickets orr
exchaangethetickkets(onlinep
purchase).Citilinkticketcounteropeerateseffectivelyandeffficientlywith
h
hospiitalityserviceethereforetthereisnolongqueue. AircraftopeerationinCittilinkhasnotperformed
d
effecttively that the techniccian departm
ment and ground hand
dling are no
ot on time (poor crew
w
sched
duling)inperformingairccraftcheckin
ngthatleadstoflightsdeelay.
O
OutbondLogistic
Baggaagesystemisusedtochecktheweigghtandconteentofpassengerbaggaggethereforethebaggagee
is not over the quota
q
in ord
der to ensure the aircraft is not ove
er weight an
nd free from
m dangerouss
b a threat for the airccraft flight system.
s
Citiliink also offeers variant value
v
added
d
thinggs that will be
servicce such as reservation
r
h
hotel
system
m. Citilink co
onsumer can
n make Citiliink hotel resservation alll
withttheaircrafttticket(bundlling)forconvvenienceresservationato
onetime.
M
Marketingan
ndsales
Citilin
nk carries ou
ut advertisin
ng and prom
motion routinely using internet, new
wspaper, baanner, sociall
media,andalsoccollaboration
nwithotherrcompanies (BankMand
diri,BankBN
NI,etc).Citilinkalsoheld
d
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No.14,2013:17
7061717

Citilin
nk fair for potential
p
con
nsumer to get
g more infformation about Citilinkk brand and all productt
featu
uresthatareprovidedbyyCitilink.

SServices
Citilin
nk provides a service program
p
for consumer to
t claim lostt baggage. This
T
is to give a safetyy
guaraanteeforcusstomer.Custtomerwhoh
hasCitilinkshieldwillgetthighercom
mpensationiffflightdelayy
andlo
ostbaggagehappens.Citilinkalsohaascustomerservicethat readytoaccceptcriticism
mandadvice
e
fromCitilinkcustomerthatw
willbereportedtomanaggement.Citilinkisdevelo
opingCRMprogram,asaa
motion media and also offer Citilink hospitalityy with expeectation to transform transactionall
prom
custo
omertoCitilinkloyalcusttomer.
d. M
MarketingMixxAnalysis
Citilin
nk Airline offers low cosst flight to 16 cities in In
ndonesia.Following othe
er services su
uch as food,,
beverage,HotelaandKioskCiitilinkasCitilinkValueA
AddedService.Citilinkhaas21unitairplanes(14
4
usand7Boeing).
Airbu
Prom
motionisthe company'saactivitiesto communicatteandintrod
duceproducctstothetarrgetmarket..
Citilin
nk promotio
on activitiees: (http://w
www.citilink..co.id), sociial media (facebook), advertisingg
(billboards,broch
hures,banneers,newspap
pers.
ees of the company caan influencee
People have an important role in provviding servicces. Employe
omerpercepttions,custom
mersatisfactionandcanaffectthepeeoplearound
dhimtoconsumeornott
custo
consu
ume the prroduct / serrvice compaanies. Humaan resourcess of Citilink resource described
d
in
n
resou
urcesanalysiss.

2. B
BusinessSitua
ationAnalyssis
B
Businesssituaationanalysiisprovidesaanexplanatio
onofbothinternalandeexternalenvironmentsoff
hotellindustry.

PortersfiveFForceAnalysiis
a. P
Th
heresultofaanalyzingalllcomponenttsofPorter'ssFiveForcessontheabo
ove,itcanbeconcluded
d
th
hat the threaat of new entrants,
e
thee threat of ssupplier barggaining pow
wer productss, bargainingg
po
ower of buyyers, threat of substitute products and intensitty of compeetition betweeen existingg
firrms is high. Rivaly amon
ng existing firms, busineess competittion in LCC Airlines
A
beco
ome tighten,,
increasing striingent domeestic flights as indicated
d by the entry of new competitors, which offerr
heaper tickett than anoth
her flights co
ompany thaat already exist at preseent.Bargainin
ng power off
ch
bu
uyer, there are
a many op
ptions for co
onsumer to choose whicch Airlines industry are suitable forr
th
hem.Buyers willpreferttobuyprodu
uctswithlow
wpricebut also hasaggoodquality and servicee
an
ndprovideaneaseoftraansaction.Bariertoentrry,LCCAirlin
nesindustry isquiteinteeresting.Thee
highbarriersttoentrycau
usedbythereesmanyvendorofairlinesprovidedcustomizationAirliness
mgovernmeentthatopen
nairpolicy,IIncreasingin
n
(eespeciallyforrnumberofccapacity),regulationfrom
marketshareaccordingto
oBPSaround
d15%ayear..

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Figure4.PortersFiveForcesinHotelIndustry

b. CompetitionAnalysis
ThereisintensecompetitionintheLCCaviationindustry.AuthoronlydescribedLionAirAirlinesas
marketleader.LionAirhavemoreroutesanddestinationtoattractcustomersandbrandawareness
from Lion Air better than Citilink Airlines. It is a challenge for Citilink Airlines to attract new
customers and retain existing customers by improving service quality, continuous
innovation,optimizingefficiencyprocesstoprovidebetterservicetocustomers.

3. SwotAnalysis
StrengthandweaknessformCitilinkairlinesthatobtainedfrominternalanalysisofCitilinkcompanies
andopportunityandthreatsobtainedfromindustryanalysisasexternalfactors.

Table3.1SwotAnalysisofCitilinkAirlines

Weakness
Strength
Low operation costs
Lack of brand awareness

Low inventory costs

Delay flight

Subsidiary of Garuda Indonesia (Shares owned by Capacity of airplane does not meet demand
Garuda which is the best airline in Indonesia)
especially at peak season

Experienced pilot
Lack of flight schedule and destination

Only have 21 airplanes compare to market

Cheapest ticket price

Safety record
Accessibility to make ticket reservation

Relative new aircraft

Opportunity
Threats
Number of potential customer always increasing every

Expensive fuel cost

year

Technology advances can result in cost savings

Many competitors (attractive industry)
Deregulations by government to open air policy (route

Price wars among competitor

agreement easier to be achieved)

Complementary industry (ex: Tourism industry) will Intervention by Government can result new
increase airline demand
costly rules.

Indonesian people very price sensitive (Citilink

Improvement services by other transport

industry (bus and train) can reduce demand for

provide cheapest ticket price)

AnalysisofBusinessSituation
AfterperforminginterviewwithCitilinkmanagements,collectingquestionnaireaboutperceptionand
expectationofCitilinkbyconsumers,andanalyzingbusinesssituation(externalanalysisandinternal
analysis),therootcausesfromCitilinkbusinessissuecanbediscovered.Themainproblemsofthis
lost market share cause by minimum preference routes and flight schedule provided by Citilink to
consumers.ComparedtoLionAirasmarketleader,Citilinkprovideslessofroutesandflightschedule
thisthingcausecustomerpreferencestochooseCitilinkairlinesdecreasing.Inadditiontorouteand
flight schedule problems there are other things that still need to be improved by Citilink such as:
improving service that is given by a flight attendant, increase brand awareness of Citilink because
therearestillmanyIndonesianpeoplewhodonotknowtheproductandservicefeaturesofferedby
Citilink. Citilink also has frequently flight delays causes the Indonesian people are reluctant to
becomerepeatbuyersforCitilink.

3.BusinessSolution
A. Citilinkactualcondition
Need to improve services. Results questionnaire from the Citilink passengers, they were
dissatisfied with the services provided by Citilink. Citilink passengers felt hard to contact
customer service, frequently flight delay, minimum flight routes and destination, cleanness of
airplane interior, mobile selling as Citilink VAS and in flight process passengers felt flight
attendantnothelpthemproperly.
Lackof brandawareness.Thereis stillalackofbrandawarenessofCitilinkfeltparticularlyby
smalltowns.

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Not optimize in efficiency and effectively in Operational activity. Based on analysis and
interviews with management of Citilink there are performance problems in Citilink employees
especiallyforsupportactivitycrews.

B. Solution
Proposed development of business solutions to increase Citilink market share begins with
provide formulation strategy using TOWS matrix, and determine strategic factor from Citilink
managementperception.
Table3.2TowsMatrixofCitilinkAirlines

STRENGTHS
WEAKNESSES
INTERNAL
FACTORS 1. Low operation costs
1. Lack of brand awareness

2. Low in ventory costs

2. Frequent flight delay
3. Subsidiary of Garuda Indonesia
3. Airplane capacity does not

4. Experienced pilot
meet demand especially in
5. Ch eapest ticket prices (regular
peak season
time)
4. Only have 21 airplanes

6. Safety record (Reputation)

5. Customer not satisfied with
7. Good web reservation
services

EXTERNAL
8. Good managerial capabilities
FACTORS
9. Innovative marketing program.
10. Relative new aircraft.

OPPORTUNITIES
SO SRTATEGIES
WO STRATEGIES

1. Number of potential customer

always increasing every year
(S1 O1, O3, O4)
(W1, O2)
2.
Technology
advances
can
Citilink
needs
to
improve
routes
and
Using
technology
advances for

result in cost saving

flight sch edule
promotion
3. Deregulations b y government (S6, O2)
(W2, O2)

to open air policy (route

Improvement in-flight system due to
Using technology advances to
agreement easier to achieved) maintenced safet y record (reputation
forecast weatherto improve
4. Complementary industry (ex:
resources).
Citilink image

Tourism industry) will

(W4,W3 O3,O4)
in crease air tran sportation
Increasing airplanes unit to

demand
provide demand an d increase
5. Indonesian people very price
flight routes and schedule

sensitive (Citilink provides

(W5, O1)
cheapest ticket)
Provide good service

THREATS
ST STRATEGIES
WT STRATEGIES
1. Unstable fuel cost

2. Many competitors (attractive

(S8, T1)
(W2,T2)
in dustry)
Citilink use relatively new aircraft
Improving services due to
3. Price wars among competitor
and good mainten ance scheduling
government regulation that allow

4. Intervention by Government
(S3, T2)
private sector create airline
can result new costly rules
Citilink has extra benefit using
company.

5. Improvement services by
parenting of strong company to
(W2,W5W,6 T2)
oth er transport industry can
improve brand awareness
Citilink should improve services,
reduce
demand
for
air
(S5,
T3)
improve fligh t routes and

services industry.
Optimize efficiency in every
schedule d ue tighter competition
operation due to maintain the
in LCC aviation.

cheapest ticket prices and doin g some

promotions to attract more consumers
(S1,S2, T5)

Relatively low operational costs,

Citilink can allocate their funds to

make improvements in services

Table3.3InternalstrategicfactorofCitilinkAirline

Internal Strategic Factors

Weight
Rating
WxR

Strength
Low operation costs
Low inventory costs
Subsidiary of Garuda Indonesia (Shares owned by Garuda which is the best
airline in Indonesia)
Experienced pilot
Cheapest ticket price
Safety record
Accessibility to make ticket reservation
Good managerial capabilities
Good marketing Program
Relative new aircraft
Weakness
Lack of brand awareness
Flights Delay
Capacity of airplane does not meet demand especially at peak season
Lack of flight schedule and destination
Only have 21 airplanes compare to market leader
Customer not satisfied with services

0.10
0.04

4.60
3.85

0.46
0.15

0.04

2.90

0.12

0.07

3.00

0.21

0.06
0.12
0.04
0.07

2.30
5.00
2.70
3.30

0.14
0.60
0.11
0.23

0.07
0.04

3.21
3.85

0.22
0.15

0.04
0.09
0.04
0.09
0.04
0.05
1.00

3.4
4.5
2.5
3.3
2.3
3.2

0.136
0.405
0.1
0.297
0.092
0.16
3.59

Table3.4ExternalstrategicfactorofCitilinkAirline

External Strategic Factors

Opportunity
Number of potential customer always increasing every year
Technology advances can result in cost savings
Deregulations by government to open air policy (route agreement easier to be achieved)
Complementary industry (ex: Tourism industry) will increase airline demand
Indonesian people very price sensitive (Citilink provide cheapest ticket price)
Threats
Unstable fuel cost
Many competitors (attractive industry)
1712
Price wars among competitor
Intervention by Government can result new costly rules.
Improvement services by other transport industry (bus and train) can reduce demand for

Weight
0.13
0.14

Rating

WxR

3.1
4

0.403
0.56

0.1

3.6

0.36

0.08

2.4

0.192

0.07

3.5

0.245

0.08
0.13

2.2
3.6

0.176
0.468

0.11
0.07
0.09
1

3.8
1.8
2.6

0.418
0.126
0.234
3.182

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Table3.5strategicfactorofCitilinkAirline

Strategic Factors
S6 Safety record
S2 Low Operation Cost
W2 Flights Delay
W4 Lack of Flight schedule and destination
O1 Number of Potential Customer increasing every year
O2 Technology advances result in cost savings
T2 Many Competitors
T3 Pricewars

Weight

Rating W x R

0.15
0.13
0.13
0.13

5
4.4
4.4
3.5

0.75
0.572
0.572
0.455

0.1
0.13
0.12
0.11
1

3
4.5
4
3.2

0.3
0.585
0.48
0.352
4.066

ProposedMembershipcardofCitilinkCustomer
To increase the market share of Citilink besides improvement in terms of service, quality
improvementandproductpreferences,increasinghumanresources,Citilinkalsoneedsaprogram
to engage consumers so a transactional consumer will become a loyal consumer. Program
developedbyCitilinkisstillaCRM(customerrelationshipmanagement)program,thereforeauthor
suggest Citilink to make a membership card for Citilink customers. Membercard is useful for
customerstoengageloyaltyprogram.

Proposednewtrainingandrecruitmentprocess.
Citilinkemployeesshalltocoordinatewiththirdparties,thereforeCitilinkHRDneedtodistinguish
individualswithsocialskillandteamworkcapabilityinrecruitmentprocess.Citilinkshouldconcern
aboutrelationalcompetencetoachieveorganizationalsuccess.CitilinkHRDshoulddesigntraining
forfunctionalexpertiseandsocialskill.

ProposedOutsourcesselectionforCitilinksupportingcrew.
Performselectionfortheprovisionofcoworkersoutsorceslabor,andmanagementCitilinkneedto
provide training to equalizetheir capabilities with the requirement of Citilink.
Besides,Citilinkmaycollaborate with outsourced service providerto providemanpower that qualified
Citilinkstandard.Asotheroption,Citilinktoestablishanaerostationschoolthatthealumniwillbe
worked for Garuda and Citilink. Citilink must assign decisive labor contract and job description for
outsourcesemployee.
Optimizinguseoftechnologyadvance
Developingpartnershipwiththirdparties(airport,airtrafficcontrol,BMG).Goodpartnership
withthirdpartiesleadabettercoordinationandflightplanningforCitilinksoperationalactivity.
Improvingbrandawarenessthroughadvertisingandpromotion.
ImprovementinUnreliabledepartures.
Citilinkimprovetheirqualityofhumanresourcesforsupportingcrew(aircraftcrewandtechnicians),
management Citilink held training courses to improve their employees capability, and with the
decisive labor contract and obvious job description, management Citilink expect improvement in
efficiencyandeffectivityofCitilinkoperationalprocess.

Figure3.1Improvementinsupportingcrew

ImprovementinTurnaroundGateTime
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ManagementCitilinkisdevelopingapartnershipwiththeairportandairtrafficcontrol,hasagood
partnershipwiththispartiesisexpectedtocreatebettercoordinationintheflightplanningprocess.
Theoutput ofthiscoordination istoacceleratethe turnaround gatetime fromCitilink airlines, so
CitilinkAirlinescanmaximizeaircraftutilizationandthepunctualityreputationofCitilinkairlinewill
getbetter.

Figure3.2ImprovementinTurnaroundGateTime

FasterturnaroundgatetimewillhelptheCitilinkairlinetomaintaincomplianceschedule.Faster
turn around gate time and use technology advances to forecast weather will help Citilink to
improve flight punctuality. Benefit from faster turn around gate in addition to punctuality
reputation,CitilinkabletomaximizeaircraftutilizationsoCitilinkcangeneratesbetterrevenues
andreducecosts(forparkingtax).

Using
technology

advances
forecast

Reliable

departure
Unproductive
Faster turn

Productive
Better profit
supporting
around gate
support crew
margin
crew
time

High aircraft
utilization

Partnership
with third

parties

Figure3.3Strategyschemeimprovement

WiththeimprovementofCitilinkstrategyscheme,Citilinkcanoptimizeefficiencyinoperational
process. Optimal efficiency process of the Citilink airline, Citilink will be able to provide a
cheapestticketpricesforconsumer(costleadershipstrategy)withabetterprofitmargin.

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dWandebori//TheIndonesia
anJournalofBu
usinessAdminisstration,Vol.2,N
No.14,2013:17
7061717

F
Figure3.4Ex
pectedActivvityMapofC
CitilinkAirlinee

4
4. Conclusio
onandImple
ementationPlan
a. C
Conclusion
Based
d on questio
onnaire dataa processingg and field observation
o
on businesss situation and
a internall
comp
pany conditio
on, it can bee concluded
d that Citilinkk Airlines face problemss in meet th
he consumerr
expecctations. Con
nsumer not satisfied caused by the lack of routtes and desttination thatt provide byy
Citilin
nkAirlines,aabadreputaationwiththefrequento
offlightdelaays.Frequentflightdelayycausedbyy
the q
quality of hu
uman resourrces and not optimal usse of techno
ology. Autho
or use TOWSS matrix forr
deterrminigpriorittyattributto
obeimproveebyCitilinkaandasoneoffthetoolsto
oformulateaastrategyto
o
solveetheproblem
m.

b. ImplementationPlan
Improvingflightroute
esandflightschedule.
ny potentiall
Citilink perfformed marrket research and determined the routes that have man
consumers, Citilink management has
h to contaact and neggotiate with local government and
d
penthenew routes.Citillinkhastoaaddtheaircrraftquantityy
airportmanagementin ordertoop
ncement of flight routees and flightt
and negotiaate with airccraft supplieer to supporrt the enhan
schedule.
Reduceflightsdelay
Contactandnegotiatewithlo
ocalgovernm
mentandairrportmanagementinorrdertoopen
n
ewroutes.
thene
Briefin
ng every mo
orning and afternoon, an
nd coordinattion with Airrport and traffic controll
emplo
oyees.
CoordinationwithBMG(BadanMeterologgidanGeofisika)dueweaatherconditiions.
Provid
destrainingfforsupportin
ngcrewabou
utefficiencyforoperatio
onalactivity.
Heldm
meetingwith
hHRDevery2monthstoevaluatesupportingcreewperformance.
Increasesservices.
Provid
deshospitalittytrainingfo
orcustomerserviceandfflightattendant.
Buildaapplicationttosavepasseengerdatabaase.
Condu
uctinspectionstoassesstheperform
manceofthefrontlinerseevery2months.
Provid
dessalestrainingforfligh
htattendant(becomesalesforceintthesky).
Heldm
meetingwith
hHRDeverymonthstoeevaluatefron
ntlinersperfformance.
MembersshipcardforCitilinkers.
Create
ecoorporatio
onwithbran
ndfashionan
ndretailstorre.
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OfferingtoCitilinkloyalcustomerviaphoneoremail.
LaunchmembershipprogramforCitilinkloyalconsumeranddescribedtheadvantagesusing
membership card of Citilink to the public via advertising to attract and engage more
consumer in using Citilink Airlines. Citilink can use CRM program that being developed by
Citilink to promote membership card, Citilink customer service can access the passenger
database to find anyone who frequently use Citilink airlines service as top priority to offer
membershipcardCitilink.
Advertising
ImprovementinValueaddedservices.
MarketresearchtodeterminedcustomerneedsandeffectivityofVASinconsumerperception.
CooperationwithHotelviaagoda.
Directofferingbycustomerserviceforselectionpassenger.
Advertising
Increasebrandawareness
CitilinkhastoincreasethenumberofadsinordertoimproveCitilinkbrandawareness.Increasing
thenumberofadsmayviainternet,television,radioandbannerespeciallyinsmallcitiesthathave
manypotentialconsumersbuttherewasnoCitilinkmarketingprograminthatcities.
InternetMedia
Creating advertisement could be via email blast, social media to give information and promotion
aboutCitilinkproducts.
TelevisionandRadio
Creating advertisement via television and radio needs negotiation with related parties in term of
price,timeslotandduration.Itisveryessentialtohaveadsattheprimetimethereforetheadswill
getattentionfrommorepotentialconsumers.
Banner/billboards
Billboard installation at the downtown about products/services that are offered by Citilink will
increase peoples awareness about Citilink products/services. Billboards are also beneficial as
Citilinkpromotionmedia(billboardeventpereventthatbeenlaunchedbyCitilink).
Inadvertisingthroughthosemedia,CitilinkmayusehousebrandasGarudaIndonesiasubsidiaryto
improveCitilinkimageinconsumerperception.
Improvinginflightsystems.
Cooperationwiththetransportationsecurityadministration.
Researchfunctionalityoflatesttechnology.
Heldmeetingwithpilotevery6monthstodetermineeffectivenessofinflightsystems.
Cooperationwithinflightsystemsupplier.
HeldtrainingforCitilinkPilottooperatenewtechnology.
Efficiencyineveryactivity.
CitilinkmaydevelopateamtoevaluateefficiencylevelofeveryCompanyactivity.
BuildOSSonactivitiesthathavenotbeenuseapplications.
HeldmeetingwithHRDevery2monthtoevaluatesperformanceofeverydivison.
HeldmeetingwitheveryheaddivisontoevaluateseffecitivenessofOSSaplication.
Improvementinrecruitmentprocess.
Providedecisivelaborcontractandjobdescription.
Provideapplicationtofacilitatetransferknowledge
Citilink has excellent managerial capabilities and provide transfer knowledge within the scope of
Citilinkemployees.Tofacilitatethetransferknowledgewithinmanagerial andemployees,Citilink
needtoestablishaninternalapplicationwhereeverydivisionintheorganizationcanaccessother
divisions data (provision of information by expertise by each division). Development of these
applicationscanusetheInternetorlannetwork.
Buildapplicationtoprovidetransferknowledge.
Preparethenetworkinfrastructure.
Introducingthesystemtowholeemployees.
Heldameetingevery3monthstodetermineeffectivenessfortheapplication.

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Recruitmentprocessforsupportingcrew.
Citilink carries out separate recruitment process for supporting activity department with
capabilityspecificationthatisneededbyCitilink.Citilinkprovidesaclearemploymentcontractfor
outsourcing employee therefore it will be easier to evaluate employee performance.
Besides,Citilink may collaborate with outsourced service provider to provide manpower that
qualified Citilink standard. As other option, Citilink to establish an aerostation school that the
alumniwillbeworkedforGarudaandCitilink.
CoordinationwithHRDtocreatenewjobspecification.
Partnershipwithoutsourcesprovidertoheldtraining.
Researchnumberofpotentialstudentsforaerostationschool.
Contact local goverment to determine regulation and feasability study about aerostation
school.
Usingtechnologyadvances.
Heldameetingwithheaddivisionevery3monthstodetermineeffectivenessofapplication.
Researchaboutfunctionaloflatestsoftwaretechnology.
Contactsoftwareprovider.
HeldmeetingwithITstafftodetermineapplicationoptimization.

Tosupportnewrecruitmentandtrainingtechinique.

Heldoutboundtoimproverelationshipofemployeesineverydivision
CoordinationwithHRDneedtodistinguishindividualswithsocialskillandteamworkcapability
inrecruitmentprocess.
HRDcreatenewprogramforexpertisetrainingandsocialskilltraining.
Meeting with Citilink managerial and HRD to deterimine effectiveness new recruitment and
trainingtechnique.

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