Selecting the Best-Performing Low-Cost Carrier (LCC) Airlines Using Analytical Hierarchy Process (AHP) and Elimination et Choix Traduisant la Realite (ELECTRE)
Downloads
Background: Low-cost carrier (LCC) is a popular air transportation service as it offers affordable fares. Many airlines have adopted the LCC system because they need to adapt to the changes in the airline industry. The competition is tight. Despite the low cost, consumers demand quality services. Therefore, LCC airlines need to find their competitive edge.
Objective: This study aims to determine the best-performing LCC airlines, the criteria, and the sub-criteria to improve the performance.
Methods: This study uses two methods from multi-criteria decision-making (MCDM), namely the analytical hierarchy process (AHP) and elimination et choix traduisant la realite (ELECTRE) II. The MCDM is selected for this study because there are four criteria and 21 sub-criteria to evaluate airline performance. The AHP method selects subcriteria that affect airline customer satisfaction. It solves complex problems by establishing a hierarchy. After being assessed by relevant parties, weights or priorities are developed. The results are used to determine the best-performing airline. Meanwhile, the ELECTRE II method ranks the airline's alternatives. This method is straightforward and widely used in the MCDM.
Results: The results indicate that four criteria and 18 sub-criteria affect the performance of LCC airlines in Indonesia. The LCC airline with the best performance is AirAsia, followed by Citilink, Wings Air, and Lion Air.
Conclusion: This research integrates the AHP and ELECTRE II methods in evaluating the performance of LCC airlines. This research also provides information about the criteria and sub-criteria to improve airline performance, hence, the customer experience.
K. R. L. Sylvana Murni Deborah Hutabarat, "Dominant Position in Domestic Flight Low-Cost Carrier in Indonesia," Int. J. Multicult. Multireligious Underst., vol. 7, no. 1, pp. 161–170, 2020.
A. Graham, "Understanding the low-cost carrier and airport relationship: A critical analysis of the salient issues," Tour. Manag., vol. 36, pp. 66–76, 2013, doi: 10.1016/j.tourman.2012.11.011.
H. B. Yowanda and M. K. Mawardi, "Strategi Pemasaran Penerbangan Berkonsep Low Cost Carrier (LCC) dan Daya Saing Perusahaan,” J. Adm. Bisnis, vol. 51, no. 2, 2017.
Y. K. Kim and H. R. Lee, "Customer satisfaction using low-cost carriers," Tour. Manag., vol. 32, no. 2, pp. 235–243, 2011, doi: 10.1016/j.tourman.2009.12.008.
Sitti Subekti, "Jurnal Perhubungan Udara Analisis Pelayanan Maskapai Penerbangan PT ‘ X ' Rute Jakarta -Batam Berdasarkan Persepsi Penumpang Analysis Services of PT " X " Airline Jakarta-Batam Route Based on Passenger Perception Sitti Subekti Pusat Litbang Perhubungan Ud,” War. Ardhia J. Perhub. Udar., vol. 39, no. 3, pp. 207–218, 2013.
Y. M, R. K, N. . Osman, and M. K. I. . Rahim, "Kajian Terhadap Kepentingan Komponen Teknologi (Technoware) Di Kalangan Pks Bumiputera Di Negeri Kedah Menggunakan Pendekatan Proses Analisis Hierarki (Ahp),” J. Teknol. Sci. Eng., vol. 4, pp. 165–172, 2018.
N. S. Md Zaini, N. E. A. Basri, S. Md Zain, and N. F. M. Saad, "Selecting the best composting technology using analytical hierarchy process (AHP)," J. Teknol., vol. 77, no. 1, pp. 1–8, 2015, doi: 10.11113/jt.v77.3180.
K. Aydin and S. Yildirim, "The measurement of service quality with SERVQUAL for different domestic airline firms in Turkey," Serbian J. Manag., vol. 7, no. 2, pp. 219–230, 2012, doi: 10.5937/sjm7-1317.
H. Min and H. Min, "Benchmarking the service quality of airlines in the United States: An exploratory analysis," Benchmarking, vol. 22, no. 5, pp. 734–751, 2015, doi: 10.1108/BIJ-03-2013-0029.
M. S. Farooq, M. Salam, A. Fayolle, N. Jaafar, and K. Ayupp, "Impact of service quality on customer satisfaction in Malaysia airlines: A PLS-SEM approach," J. Air Transp. Manag., vol. 67, no. December 2017, pp. 169–180, 2018, doi: 10.1016/j.jairtraman.2017.12.008.s
S. Akmal and F. Firman, "Evaluasi kualitas pelayanan dengan metode airqual, importance-performance analysis dan competitive zone of tolerance-based importance-performance analysis,” J. Kaji. Manaj. dan Wirausaha, vol. 2, no. 3, p. 136, 2020, doi: 10.24036/jkmw02100320.
T. Lupo, "Fuzzy ServPerf model combined with ELECTRE III to comparatively evaluate service quality of international airports in Sicily," J. Air Transp. Manag., vol. 42, pp. 249–259, 2015, doi: 10.1016/j.jairtraman.2014.11.006.
Z. Zulaichah, "Pengaruh Fasilitas Bandar Udara Terhadap Kinerja Ketepatan Waktu Maskapai Penerbangan,” War. Ardhia J. Perhub. Udar., vol. 40, no. 4, pp. 223–234, 2014, doi: 10.25104/wa.v40i4.219.223-234.
A. F. M. Mardlijah, "Penerapan metode fuzzy data envelopment analysis untuk menganalisis efisiensi kinerja rute penerbangan maskapai penerbangan (studi kasus di pt. garuda indonesia tbk),” Inst. Teknol. Sepuluh Nop., pp. 1–6, 2019.
S. Perçin, "Evaluating airline service quality using a combined fuzzy decision-making approach," J. Air Transp. Manag., vol. 68, pp. 48–60, 2018, doi: 10.1016/j.jairtraman.2017.07.004.
H. M. Lyu, W. H. Zhou, S. L. Shen, and A. N. Zhou, "Inundation risk assessment of metro system using AHP and TFN-AHP in Shenzhen," Sustain. Cities Soc., vol. 56, no. February, p. 102103, 2020, doi: 10.1016/j.scs.2020.102103.
M. R. Mokhtar, M. P. Abdullan, M. Y. Hassan, and F. Hussin, "Application Of Promethee Method For Demand Side Management (Dsm) Options Ranking," J. Teknol. Sci. Eng., vol. 23, pp. 35–40, 2015.
I. A. Hamid-Mosaku, M. R. Mahmud, and M. S. Mohd, "An evaluation of marine geospatial data infrastructure (MGDI) by delphi-analytic hierarchy process (AHP) approach," J. Teknol., vol. 78, no. 6–12, pp. 57–68, 2016, doi: 10.11113/jt.v78.9233.
R. Putra, I. Werdiningsih, and I. Puspitasari, "Sistem Pendukung Keputusan Pemilihan Siswa Berprestasi di Sekolah Menengah Pertama dengan Metode VIKOR dan TOPSIS,” J. Inf. Syst. Eng. Bus. Intell., vol. 3, no. 2, p. 113, 2017, doi: 10.20473/jisebi.3.2.113-121.
J. Benítez, X. Delgado-Galván, J. Izquierdo, and R. Pérez-García, "Achieving matrix consistency in AHP through linearization,” Appl. Math. Model., vol. 35, no. 9, pp. 4449–4457, 2011, doi: 10.1016/j.apm.2011.03.013.
T. L. Saaty, Decision-making with the AHP: Why is principal eigenvector necessary. 2002.
S. A. Mary and G. Suganya, "Multi-Criteria Decision Making Using Electre," Circuits Syst., vol. 7, no. 6, pp. 1008–1020, 2016, doi: 10.4236/cs.2016.76085.
N. Chen and Z. Xu, "Hesitant fuzzy ELECTRE II approach : A new way to handle multi-criteria decision-making problems," Inf. Sci. (Ny)., vol. 292, pp. 175–197, 2015, doi: 10.1016/j.ins.2014.08.054.
M. M. Marzouk, "ELECTRE III model for value engineering applications," Autom. Constr., vol. 20, no. 5, pp. 596–600, 2011, doi: 10.1016/j.autcon.2010.11.026.
H. C. Liao, L. Y. Yang, and Z. S. Xu, "Two new approaches based on ELECTRE II to solve the multiple criteria decision-making problems with hesitant fuzzy linguistic term sets," Appl. Soft Comput. J., vol. 63, pp. 223–234, 2018, doi: 10.1016/j.asoc.2017.11.049.
P. Chatterjee, V. M. Athawale, and S. Chakraborty, "Selection of Materials Using Compromise Ranking and Outranking Methods," J. Mater. Des., vol. 30, 2009, doi: doi:10.1016/j.matdes.2009.05.016.
P. A. Raj and D. N. Kumar, "Ranking of River Basin Alternatives Using ELECTRE," Hydrol. Sci. J., vol. 41, no. 5, pp. 697–713, 2009, doi: http://dx.doi.org/10.1080/02626669609491540.
Y. Febrianto and T. J. R. Sitinjak, "Peran Kepuasan Konsumen Dalam Memediasi Pengaruh Kualitas Layanan Terhadap Minat Beli Konsumen Untuk Menggunakan Jasa Maskapai Penerbangan Air Asia,” Bus. Manag. J., vol. 13, no. 1, 2017.
S. Diana and D. W. Apriandi, "Pengaruh Orientasi Pasar Terhadap Kinerja Pemasaran Maskapai Penerbangan Air Asia ( Tujuan Penerbangan Kuala Lumpur Malaysia ),” Dimensi, vol. 18, no. 1, pp. 28–40, 2022.
S. A. Kasdi, I. Ibrahim, A. Amer, and R. Masrom, "The Effect Of Health Protocol, Low Rates And Service Quality On Customer Satisfaction During Pandemic (Study Case On Airasia Indonesia Airlines)," Grostlog, vol. 5778, no. 2012, pp. 129–136, 2021.
Berto, E. Widarwati, and N. Nurmalasari, "Analysis of the Difference of Green Financing Application of Company Performance PT. Air Asia," Diskurs. Ilmu Manaj. STIESA, vol. 17, no. 1, pp. 47–52, 2020.
L. R. Payanta, "Assignment Management Crisis," Academia, vol. 2, no. 1, pp. 1–11, 2018.
Copyright (c) 2022 The Authors. Published by Universitas Airlangga.
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors who publish with this journal agree to the following terms:
All accepted papers will be published under a Creative Commons Attribution 4.0 International (CC BY 4.0) License. Authors retain copyright and grant the journal right of first publication. CC-BY Licenced means lets others to Share (copy and redistribute the material in any medium or format) and Adapt (remix, transform, and build upon the material for any purpose, even commercially).
