ABSTRACT

35Since the air transportation is increasingly needed by society, the airline industry sees considerable market opportunities in Indonesia, resulting in many airlines attempting to establish low-cost carriers. Low-cost carrier domestic airlines are in great demand in many circles. Knowing the preference for low-cost carrier domestic airlines passengers is very important in order to determine the appropriate strategy in reaching the number of passengers. Preferences are calculated based on attributes using the conjoint analysis method. Respondents were asked to assign values to the level of each attribute. The results show that prices have the highest relative importance (NRP), followed by brand equity, facilities, time, and cabin staff. However, the most preferred combination of low-cost carrier domestic airlines is the price at the time of off-peak, has on-time brand equity, has a 5 kg baggage facility, 7−9 a.m. flight time, and organized cabin staffs. This result implies how low-cost carrier airlines should deliver excellent services by evaluating their marketing and operational strategies.