Business Strategy for PT Pelita Air Service to Increase Revenue

Abstract

PT Pelita Air Service (PT PAS) is a subsidiary of PT Pertamina (Persero) which established in 1970 and focuses on air charter services as its core business. PT PAS has long years of experience in operating diverse types of fixed wing and rotary wing aircrafts with well proven safety record and high compliance. In the last six years, PT PAS has encountered problem of a downward trend in air charter revenue. The research analyses the external and internal environment of PT PAS air charter business. The external analysis is conducted using PESTEL Framework, Five Forces Model, Customer Analysis, and Competitor Analysis. The internal analysis is conducted using Resource Based View Model, Value Chain Analysis, STP Model, Marketing Mix 7P, and Business Model Canvas. Interviews are conducted to several participants from its customers and management. To examine PT PAS condition, SWOT Analysis has been used to evaluate the strengths, weaknesses, opportunities, and threats. Root Cause Analysis has been performed to discover the true cause of the problem. Based on the result of the examination, strategies are formulated using Strategy Diamond Model and proposed to PT PAS with implementation plan.