Lion Air

4. Would you recommend that Lion Air become a full service carrier?

Yes, we would recommend Lion Air become a full service carrier because nowadays low cost strategies may not be effective in gaining market share since customers often buy for reasons that are not price- related but have to do with other aspects such as convenience, good experience and excellent service during flight. Actually, another point that should be considered in this case is not only Garuda Indonesia but also Lion Air were established become profitable company, therefore we could say that their main goal is creating high profit. If Lion Air still concentrated in low cost strategies, it might be increasing sales or market share but at the same time it also might be detrimental to profit. On the other hand, we could say that low price strategy simply increase consumer surplus at the expense of profit. Becoming a full service carrier, we believe that Lion Air couldn't apply low cost strategy and need to change it into middle cost strategy or high cost but as long as customer happy with their service, for sure they are willing to pay more.

5. Do you support the Lion Air's Decision to operate an all- Boeing Fleet?

Yes we support Lion Air to operate an all - Boeing Fleet because it could carry more passengers and flew further which give positive impact in Lion Air's strategy for expanding route structure throughout Southeast Asia. Another benefit which Lion Air could get in structural such as : aerodynamic, strengthened wings, enhancements to the leading and trailing edge flap system can give more convince to customer in safety then there will be high possibility for customer to choose Lion Air.

Our suggestion also supported by Scott Carson,2007 ( in this case ) who said, " we are thrilled that lion Air had chosen the Next-Generation 737 to play a key role in its plans for growth and market leadership.Lion Air's selection of the 737 to support its strategic expansion and fleet modernization validates the superior economics and value the 737s offers to airlines.it was the most efficient single-aisle airplane operating in today's market."

CHAPTER IV & V

ADDITIONAL MATERIAL FROM MEDIA

Nowadays, competition in airline industry is getting tight in the market that had pushed the organization to do various ways in term of product and service to be able to exist in this 'war'. For attracting customer, the big player in industry airline of Indonesia which are Garuda Indonesia and Lion Air tried to upgrading their service and quality of their product by adding new air craft and show consistency in providing best service.

Based on article in www.centreforaviation.com, we could highlight that Indonesia's domestic market is expected