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Demand in Indonesian Domestic Air Travel Market After Deregulation
Advances in Engineering Research (AER), volume 147 Conference on Global Research on Sustainable Transport (GROST 2017) DEMAND IN INDONESIAN DOMESTIC AIR TRAVEL MARKET AFTER DEREGULATION Basri Fahriza1,2, Frank Willey1 1. RMIT University, 2. STMT Trisakti. corresponding author: [email protected] Abstract: This research is exploring the change of domestic air travel market demand in Indonesia prior and post deregulation. Changes on policies in Indonesian aviation were contributed to the present day market. This historical overview will examine the ‘oligopoly policy’ with only five airlines and the deregulation process that began in 1999. The research then analyses the demand for domestic air travel. Exponential Moving Average Growth were using to analysing data to forecasting the number of passenger from year 2007 to 2015 in yearly basis. Demand is then analysed on three separate airline routes in Indonesia they are Jakarta-Medan, Jakarta-Surabaya, and Jakarta-Pontianak. Keywords: Demand, Domestic Air Travel, Deregulation, Passeneger, Indonesia. Introduction Deregulation in Indonesia start when governments remove restrictions on airlines business Indonesia to encourage the efficient, competitive and consumer oriented marketplace in Indonesian airline industry (Williams, 1993). Secretary General of the Ministry of Communications Anwar Suprijadi said the decision to deregulate was taken in a bid to promote fair competition in domestic airline services, (“Govt insists on licensing more airlines,” 1999). And resulting numbers of new Indonesian airlines emerged predominantly mostly in the cut-fare sector including Lion Air; Indonesia’s Air Asia, former Adam Air, former Batavia Air and Sriwijaya Air, radically changing the nature of the airline business in Indonesia with present of low cost carrier. -
Vol-5, Issue 2
International Journal of Management Sciences and Business Research, Feb-2016 ISSN (2226-8235) Vol-5, Issue 2 Analysis on the Factors Causing Airlines Bankruptcy: Cases in Indonesia Author’s Details: (1)Suharto Abdul Majid-Faculty of Economic and Business, Padjadjaran University, Bandung, Indonesia (2) Sucherly - Faculty of Economic and Business, Padjadjaran University, Bandung, Indonesia (3) Umi Kaltum- Faculty of Economic and Business, Padjadjaran University, Bandung, Indonesia Abstract the high growth of national aviation services after the aviation deregulation in 2000 has given a positive impact on the increase of national economic activities, especially in tour and trade. In the same time, however, it negatively impacts the aviation business itself, making many airline companies stop their operation and then go to bankruptcy. The aim of this research is to analyze the factors causing bankruptcy to some national airline companies in Indonesia after the aviation deregulation in the periods of 2001-2010 and 2011-2015. It is an exploratory research with a qualitative descriptive approach emphasizing on evaluating the factors causing bankruptcy to a number of domestic airlines in Indonesia. The method of data collection is an interview with the format of focus group discussion (FGD), while the data analysis uses factor analysis method. The results of this research show that there are two main factors that cause bankruptcy to a number of domestic airlines in Indonesia. They are both internal and external factors of the companies. Key words: Airline companies bankruptcy, internal factors, and external factors. INTRODUCTION Since the implementation of the national aviation deregulation policy in 2000, the growth of aviation business in Indonesia increases rapidly. -
Flying Blind
VAN ZORGE REPORT — FEBRUARY 8, 2007 AVIATION Flying blind s the top executives from nearly every major Indonesian airline gathered THE MEETING OF AIRLINE EXECUTIVE WAS around a table at the ministry of transportation in mid-January, a TENSE. A general feeling of irritability filled the air. The group rarely meets and certainly not on such short notice—a combination that led to a somewhat tense atmosphere, one executive at the meeting told the Report. Following the January 1 Adam Air crash, the country’s beleaguered THEY FELT IT WAS UNNECESSARY DESPITE transportation minister, Hatta Radjasa, had called the meeting to discuss the THE RECENT CRASH. country’s aviation safety procedures, which had fallen under heavy scrutiny in the wake of the recent disaster. “Some of them were grumbling,” the executive said. “They said that they knew perfectly well the government’s aviation safety procedures, and they didn’t need reminding.” Indeed, many of those aviation executives certainly have a very professional HOWEVER, ACCUSATIONS ARE RIFE THAT attitude toward air safety. But since the Adam Air tragedy, accusations have SAFETY MEASURES ARE LACKING. intensified that not all airlines in Indonesia have prioritised the safety of their passengers and crews. Some NGOs, DPR members and media outlets have recently questioned THE AVIATION INDUSTRY SEEMS TO BE TWO what they see as the development of a two-tier system within Indonesia’s TIERED IN INDONESIA. aviation industry. They say that many of the budget carriers are prioritising profit over safety while the more expensive carriers are doing a more professional job. However, the jury is still out on whether these budget carriers, which BUT THE JURY IS STILL OUT ON THE mushroomed after the industry was deregulated in the late 1990s, are operating BUDGET CARRIERS. -
THE IMPACT of RESTRUCTURING on the AIRLINE PERFORMANCE: the Case of Garuda Indonesia
Výskumné štúdie THE IMPACT OF RESTRUCTURING ON THE AIRLINE PERFORMANCE: The Case of Garuda Indonesia Roberto AKYUWEN ABSTRACT: Garuda Indonesia is an airline company owned by the Indonesian Government. The airline has been vastly deve- Dr. Roberto Akyuwen loped since being established in 1950. Remarkable growth has been achieved mainly due to the fact that in the Senior Lecturer early years there was minimal competition in the airline industry in Indonesia. Being the fi rst Indonesian airline, Finance Education and Training Center Yogyakarta Garuda Indonesia monopolised the commercial air transportation services. This situation allowed more than Ministry of Finance Republic Indonesia reasonable company performance for many years. However, since the government introduction of an open do- Jl. Solo Km 11 Kalasan, Sleman, Yogyakarta 55571 INDONESIA mestic airline industry in 1990, Garuda Indonesia started to face diffi culties. Garuda competed against a number Telp. 62-274-496219, Facs. 62-274-497235 of private airlines, which possessed expansive strategies in developing routes as well as increasing the number [email protected], [email protected] of aircraft. The performance of Garuda Indonesia gradually decreased to a low when operational profi t and cash fl ow reached negative fi gures during the period 1993 to 1997. Further, the seat load factor and on time perfor- Roberto Akyuwen was born in Ambon, Indonesia on 19 March, 1970. He obtained his doctorate degree with cum mance were also worsening. To overcome these problems, restructuring was fi rst undertaken during 1998 to laude in 2003 from the Doctorate Program in Economics, Gadjah Mada University Yogyakarta. Currently, he has 2001. -
Managementinnovation Strategy to Face the Competition of Domesticcommercial Flight Business in Indonesia Case Study: Garuda Indonesia Airline
MANAGEMENTINNOVATION STRATEGY TO FACE THE COMPETITION OF DOMESTICCOMMERCIAL FLIGHT BUSINESS IN INDONESIA CASE STUDY: GARUDA INDONESIA AIRLINE S. RENDY ARDIANSYAH Department of Engineering Management, University of Birmingham, Birmingham, United Kingdom E-mail: [email protected] Abstract- Innovation is an essential part to be done bycompanies in order to survive for the tight competition in business industry. Being innovative does not just creating new product using the expertise of market researchers, and product developers. It also involves using capabilities of everyone in organisation to achieve the process that help new product to reach the market effectively and efficiently. Garuda Indonesiabecomes one of many companies that successfully innovate in their core business. They do a good innovation in their marketing strategy as well as in the company's management structure. In thispaper, a review of selected innovation strategy has been undertaken by Garuda Indonesia that can provide a competitive advantage and sustainability in the global market. Based on the literature review, a framework has been developed with key factors/enablers that determine the resilience and competitiveness of innovation strategy of Garuda Indonesia. This framework has been empirically studied by collecting data from annual report, and data from company. It involves a sample of competitor and provides further insight into the key characteristics associated with resilience and competitiveness of Garuda Indonesia airline that are influenced by advances -
The Impact of Fuel Increase and Currency Exchange Depreciation on Indonesia Aviation Industry Sustainability
ISSN 2355-4721 The Impact of Fuel Increase and Currency Exchange Depreciation on Indonesia Aviation Industry Sustainability The Impact of Fuel Increase and Currency Exchange Depreciation on Indonesia Aviation Industry Sustainability Juliater Simarmata Charles A.N Wynd Rizaldy STMT Trisakti STMT Trisakti STMT Trisakti [email protected] [email protected] [email protected] Abstract Population growth after the crisis of 1998, was accompanied by a very encouraging economic growthreaching 6.3% during 2012. Accordingly, the development of the aviation industry continues to increase rapidly, this is evidenced by the emerging new airlines such as AW Air, Jatayu Air, Lion Air, Star Air which was followed by Batavia Air, Sriwijaya Air, Adam Air, Water Aerfata Papua, which makes the competition between one another takes place very tighty. Through the methods of qualitative and quantitative research design and analysis of rate of expansion which is explorative description, then it is clearly visible that only airlines with appropriate strategies that can survive in the midst of the world economic shocks, especially aviation fuel price increases that occurred every two weeks and the weakening of the rupiah against the dollar . The strategy implemented is related with fuel conservation policy; such as applying Cost Index, Tankering Fuel, Optimum Level Flight elections, focusing on flight technic and maintenance in order to improve efficiency in the use of fuel or aviation fuel, or even change the type of aircrafts. Keywords: fuel increase, currency exchange depreciation 199 Jurnal Manajemen Transportasi & Logistik (JMTransLog) - Vol. 01 No. 03, November 2014 Juliater Simarmata, Charles A.N, Dian Artanti Arubusman ISSN 2355-4721 Introduction As we know, the growth of the world population continues to increase, and Indonesia occupies position number 4 (four) of the world, after China, India and the United States. -
Air France-KLM Group for the Year Ended Activity AFR 33 December 31, 2012
Selected fi nancial information 2 Highlights of the 2012 fi nancial year AFR 4 4.6 Note on the methodology for the reporting Corporate governance AFR 5 of the environmental indicators 129 1.1 The Board of Directors 6 4.7 Environmental indicators 132 1.2 The CEO Committee 30 4.8 Statutory Auditor’s Attestation report on the social, environmental and corporate 1 1.3 The Group Executive Committee 30 citizenship information disclosed in the 2012 management report 136 4.9 Statutory Auditor’s Assurance report on a selection of environmental and social indicators of Air France-KLM group for the year ended Activity AFR 33 December 31, 2012. 137 2.1 Market and environment 34 2.2 Strategy 42 2 Activities Financial r eport 139 2.3 Passenger business 45 2.4 Cargo business 53 5.1 Investments and fi nancing 140 2.5 Maintenance business 57 5.2 Property, plant and equipment 143 2.6 Other businesses 62 5 5.3 Comments on the fi nancial statements 146 2.7 Fleet 64 5.4 Key fi nancial indicators 150 2.8 Highlights of the beginning Financial statements AFR of the 2013 fi nancial year 71 5.5 Consolidated fi nancial statements 156 5.6 Notes to the consolidated fi nancial statements 163 5.7 Statutory auditors’ report on the consolidated fi nancial statements 245 Risks and risk 5.8 Statutory fi nancial statements 247 5.9 Five-year results summary 259 management AFR 73 5.10 Statutory Auditor’s report 3.1 Risk management process 74 on the fi nancial statements 260 3 3.2 Risk factors and their management 75 5.11 Statutory Auditors’ special report on regulated agreements and commitments 261 3.3 Market risks and their management 83 3.4 Report of the Chairman of the Board of Directors on corporate governance, internal control and risk management for the 2012 fi nancial year 87 3.5 Statutory auditors’ report prepared in accordance Other information 265 with article L.225-235 of the French Commercial Code (Code de commerce) on the report prepared 6.1 History 266 by the Chairman of the Board of Directors of Air France-KLM S.A. -
Finance & Legal
Finance & Legal Issue 3 April 2007 Submarine Telecoms Forum is published bi-monthly by WFN Strategies, L.L.C. The publication may not be reproduced or transmitted in any form, in whole or in part, without the Welcome to the 31st issue of Submarine Telecoms Forum magazine, our Finance & Legal permission of the publishers. edition. Submarine Telecoms Forum is an independent com- mercial publication, serving as a freely accessible forum for With tax time coming to much of Europe and America, it seems timely to talk once again professionals in industries connected with submarine optical about finance and legal issues affecting our industry. Long gone are the Romanesque parties fibre technologies and techniques. of yesteryear; those high flyers are cooling their heels today in some picturesque federal Liability: while every care is taken in preparation of this publication, the publishers cannot be held responsible for the facility. Instead, our industry is much smaller, much more focused than before. Money is accuracy of the information herein, or any errors which may available, but not free wheeling; but it is moving again. occur in advertising or editorial content, or any consequence arising from any errors or omissions. In turn, we have some excellent articles for this issue. The publisher cannot be held responsible for any views Andy Lipman and Ulises Pin discuss financing for private submarine cable networks, while expressed by contributors, and the editor reserves the right to edit any advertising or editorial material submitted for John Golding outlines one company’s proactive efforts in sustainability. Robert Mazer details publication. the change in the ownership, market and technology of submarine cables, as John Weisbruch © WFN Strategies L.L.C., 2006 illustrates issues affecting system rights-of-way and permitting. -
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Asia Tourism Forum 2016 – The 12th Biennial Conference of Hospitality and Tourism Industry in Asia (ATF-16) The Potential Cost of Travel Restriction on Tourism Industry I Made Budiasa and Nyoman Mastiani Nadra Tourism Department Bali State Polytechnic Denpasar – Bali, Indonesia E-mail : [email protected]; [email protected] Abstract— Tourism has experienced a big increase as the countries. The rise of global trade and commerce as the result result of globalization. The rise of the internet and all the online of free trade agreement also caused global growth in term of tourism businesses have recorded growth that was never possible world travels, whether people travel for business or leisure. before the globalization period. The rise of budget airlines with Tourism as well has experienced a big increase as the their online bookings, or small, cheaper accommodation result of globalization. The rise of the internet and all the providing discounted rates have attracted people to travel more. However, globalization also brings some threats to security, online tourism businesses have recorded growth that was safety and welfare of all world communities in such never possible before the globalization period. The rise of interconnected world. The relatively easy interaction between budget airlines with their online bookings, or small, cheaper world communities cannot be controlled by the government. One accommodation providing discounted rates have attracted of the measures imposed by the government to avoid the risks of people to travel more. With a click on the button, people can the above mentioned threats is travel restriction that ranges from book an air ticket or a room without much to worry about. -
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Padjadjaran Journal of International Law ISSN: 2549-2152, EISSN: 2549-1296 Volume 4, Number 2, June 2020 Responsibilities of the State and Aircraft Manufacturer on Lion Air JT610 and Ethiopian Airlines ET302 Accidents under International Law Khansa Aminatuzzahra , Atip Latipulhayat** Abstract Lion Air JT610 and Ethiopian Airlines ET302 crashes occurred on October 2018 and March 2019 respectively. The main cause of the accident on both flights, which used Boeing 737 MAX 8 aircraft, is the defect on the Maneuvering Characteristics Augmentation System (MCAS), a new anti-stall system of this aircraft model. Boeing 737 MAX 8 is produced by Boeing Company which resides in the United States. However, passengers on both accidents could not claim compensation from Boeing Company because there is no international law that regulates aircraft manufacturer responsibilities. This research tries to analyze whether passengers can request for compensation to the United States and whether national court rulings or judgments can fill the gap in international law regarding aircraft manufacturer. The research uses the normative juridical approach with analytical descriptive method. The research uses the library research method, focusing mainly on primary, secondary, and tertiary legal resources. This research found that the current international law could not accommodate the interests of plaintiffs to hold the United States accountable. The usage of forum non conveniens principle at the national courts made it difficult for the plaintiffs to obtain the compensation they are entitled to. Subsequently, the national law applied in each case is different which created a distinction on the compensation received by each plaintiff for the loss they suffered. -
Reference Document Contents
2005-06 reference document Contents Corporate governance — 10 Activity report — 46 Social and environmental data — 86 Risks and risk management — 104 Financial report — 124 Additional Information — 248 This document is an unofficial translation of the French Document de Référence, which was filed with the French Autorité des Marchés Financiers on June 29, 2006, in accordance with article 212-13 of the AMF General Regulations. This unofficial translation has been prepared by Air France-KLM for information purposes only and has not been reviewed or registered with the AMF. The French Document de Référence may be used for purposes of a financial transaction if supplemented with an offering memorandum approved by the AMF. In the event of any ambiguity or discrepancy between this unofficial translation and the French Document de Référence, the French version shall prevail. Chairman’s message Dear Shareholder, We achieved an excellent performance in 2005-06. Operating income rose by nearly 70% to 936 million euros and net income reached 913 million, including an exceptional gain of 504 million euros on Amadeus. These results confirm what we had already announced last year, the success of our merger, both operationally and financially. Our combination has given us a real competitive advantage, supporting our strategy of profitable growth. Despite a continued high oil price our objective is for operating income in the current financial year at least in line with last year. Our confidence in the future has led us to propose a doubling in the dividend to 30 euro cents. Within a context of buoyant economic conditions, Air France and KLM have been able to seize every opportunity offered by sustained demand thanks to the power of their networks, organized around two highly efficient hubs. -
NTSB Chair Deborah Hersman Accepts ISASI Honorary Membership CONTENTS
JULY–SEPTEMBER 2011 NTSB Chair Deborah Hersman Accepts ISASI Honorary Membership CONTENTS Volume 44, Number 3 Publisher Frank Del Gandio FEATURES Editorial Advisor Richard B. Stone Editor Esperison Martinez Design Editor William A. Ford 5 Using Commercial Satellite Imagery in Associate Editor Susan Fager Aircraft Accident Investigation Annual Report Editor Paul Mayes By Dr. Matthew Greaves (AO7700) and Professor Graham Braithwaite (MO3644), ISASI Forum (ISSN 1088-8128) is published Cranfield Safety and Accident Investigation Centre, Cranfield University, UK—The quarterly by International Society of Air authors evaluate the current state of the art focusing on the needs and priorities of Safety Investigators. Opinions expressed by authors do not necessarily represent official an accident investigation and reporting on live trials conducted in Cyprus in 2009. ISASI position or policy. Editorial Offices: Park Center, 107 East 10 Safety Reporting and Investigation— Holly Avenue, Suite 11, Sterling, VA 20164-5405. Telephone (703) 430-9668. Cornerstone of SMS Fax (703) 430-4970. E-mail address isasi@ By Paul E. Mayes, Vice President, ISASI—Although the 1979 DC-10 crash on the erols.com; for editor, espmart@comcast. slopes of Mount Erebus occurred long before the concept of an integrated safety net. Internet website: www.isasi.org. ISASI Forum is not responsible for unso- management system, there were elements of SMS already in place. licited manuscripts, photographs, or other materials. Unsolicited materials will be 14 Accident Trends in Asia: returned only if submitted with a self-ad- dressed, stamped envelope. ISASI Forum Major Improvements and Remaining Challenges reserves the right to reject, delete, sum- By Robert Matthews, Ph.D., Senior Safety Analyst, Federal Aviation Administra- marize, or edit for space considerations any submitted article.