Dominant Position in Domestic Flight Low Cost Carrier in Indonesia

Abstract

Transportation is an important need for the community. In everyday life, people must be touch upon directly with transportation. Every day there are expenses needed for transportation. Therefore, the transportation is a promising business. Transportation needs are definitely increasing. This study specifically discusses about air transportation, namely domestic flights. The type of service in the flight consists of full services and low cost carriers. Specifically, this study discusses domestic flights with low cost carrier types. This type of flight has very high interest because the price tends to be cheap. The factor that causes low cost of the type of low cost carrier is the reduction in some of the facilities provided by the full service type. Some facilities are not provided such as food facilities, narrowed passenger seat size and relatively reduce baggage weight. The problem that arises is if domestic low cost carrier airlines have controlled only by two airlines. Based on data from the Ministry of Transportation in 2017, two low cost carrier airlines have a high percentage of the market, Lion Air (34.19%) and Citilink (12.62%). The mastery of the low cost carrier market by two airlines has an impact on competition. Research Methodology: Empirical legal studies who conducted to obtain primary data and using inductive thinking methods.

Research Findings:

The purpose of this study was to determine the influence of the dominant position owned by low cost carrier airlines on domestic flights. What are the effects, especially those that affect consumers. The method used is the juridical empirical approach method.