Analysis of cost behavior in air transportation business before and during Covid-19 pandemic: Case study of Garuda Indonesia
List of Authors
  • Benito Sabastian , Ruslan Prijadi

Keyword
  • crisis, cost behavior, cost structure

Abstract
  • The airline industry is widely regarded as a regulatory-intensive, advanced technology, and low-profit margins industry. Therefore, airlines need to conduct the best possible cost management, especially in facing a crisis like Covid-19 pandemic. Failure to understand cost behavior might lead to improper cost management strategies and cause substantial losses. The current study aims to analyze the cost behavior of one of the largest airlines in Indonesia. This research employs cost behavior analysis based on data collection from financial statements, data observations, and in-depth interviews with related persons in charge. The results show that cost management should focus on a more dominant cost structure under crisis conditions. This research sheds light on maintaining a competitive advantage in the airline industry, especially regarding cost management strategies.

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