Analysis on the Factors Causing Airlines Bankruptcy: Cases in 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.

Keywords: airline companies bankruptcy, internal factors, and external factors