Abstract
The purpose of this study is to determine how the structure, behavior, and performance of the airline industry in Indonesia. And to know how much influence the structure, conduct and performance of a airline industry in Indonesia. As measurement of market structure use the Concentration Ratio (CR4), Herfindahl index-Hirchman (IHH) and use panel regression, to analize the impact of structure and conduct to word performance use domestic airline companies in Indonesia in period 2007-2011. The results showed the level of concentration ratio (CR4) ranged from 69.316% 87.896%, it can be said the structure of the airline industry is an oligopoly tight in period 2007-2011. By using Herfindahl-Hirschman index, which have range from 0.14718 to 0.25599, means, Indonesia’s aviation industry structure is not monopoly because it is not close to 1, the airline companies is competitive with high concentration, the market characterized by competition among the four dominant firms aviation industry in Indonesia in terms of passenger numbers. The panel regression use Fixed Effect, and F test results explained that the structure, the behavior of a significant effect on the performance variables. The amount coeficient of determination (R²) is 0.979771, this shows that the ability of the independent variables in explaining the variation of the dependent variable by 97,97% and the remaining 2,03% is explained by other variables outside the model.Keywords: Oligopoly, CR4, IHH, Panel Regression, Structure, Behavior, and Performance.
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