Pamungkas, Dimas Putra (2017) The Effect Of Jet Fuel Price And Macroeconomics Variables On Profitability Of Airline Industry In Asia (Study At Airline Companies In Indonesia, India, And, China Period 2006-2015). Sarjana thesis, Universitas Brawijaya.
Abstract
Airline industry is a service industry with a low level of profitability since it is affected by external environmental changes as well as internal operations. Jet fuel represents any carrier’s second-highest operational cost after labor. Any increase in the cost of oil can have dangerous effect for the airline industry. Most carriers incur both costs and revenues in a number of currencies, and the fact that some of these cash flows require conversion into a different currency forms the basis of an airline’s foreign exchange risk. GDP and inflation impact personal finance, investments, and job growth in which affect the profitability of firms in that country. This research is conducted to examine the effect of jet fuel price and macroeconomic variables which are represented by exchange rate, GDP, and inflation on profitability which is represented by net profit margin (NPM) of airline industry in Asia. Indonesia, India, and China are the research samples of this research because they are the biggest three increasing air passenger market in 2015. The type of research is explanatory with quantitative approach. Data collection technique in this research is documentation technique and the type of data is the secondary data from PT. Garuda Indonesia, Tbk. (Indonesia), Air India, Ltd. (India), Air China, Ltd. (China), World Bank, and U.S. Energy Information Administration. The data is annual data period 2006-2015. Multiple linear regression analysis is used in this research to analyze the relationship between variables and show the direction relationship between independent and dependent variables. The results indicated that; (1) Jet Fuel Price, Exchange Rate, GDP, and Inflation have significant effect on NPM of all airline companies simultaneously; (2) Jet Fuel Price has significant negative effect on NPM of PT. Garuda Indonesia, Tbk. partially. In contrast, Jet Fuel Price has no significant effect on NPM of Air India, Ltd. and Air China, Ltd. partially; (3) Exchange Rate has significant negative effect on NPM of Air India, Ltd. and Air China, Ltd. partially, In contrast, Exchange Rate has no significant effect on NPM of PT. Garuda Indonesia, Tbk. partially; (4) GDP has significant positive effect on NPM of all airline companies partially; and (5) Inflation has significant negative effect on NPM of Air India, Ltd. and Air China, Ltd. partially. In contrast, Inflation has significant positive effect on PT. Garuda Indonesia, Tbk. partially.
| Item Type: | Thesis (Sarjana) |
|---|---|
| Identification Number: | SKR/FIA/2017/916/051710347 |
| Uncontrolled Keywords: | Jet Fuel, Macroeconomic, Exchange Rate, GDP, Inflation, Profitability |
| Subjects: | 600 Technology (Applied sciences) > 658 General management > 658.1 Organization and financial management > 658.15 Financial management |
| Divisions: | Fakultas Ilmu Administrasi > Ilmu Administrasi Bisnis / Niaga |
| Depositing User: | Kustati |
| Date Deposited: | 16 Nov 2017 01:22 |
| Last Modified: | 25 Nov 2020 06:52 |
| URI: | http://repository.ub.ac.id/id/eprint/5569 |
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