PROPOSED MARKETING PLAN FOR INCREASING PASSENGER LOAD FACTOR OF NAM AIR BANDUNG-SURABAYA ROUTE

Bandung is one of the potential areas for domestic flights, so Nam Air open Bandung-Surabaya route on 2015. In February 2019, this route experienced a decrease in passenger load factors which only reached 36%, even though the domestic flight PFL average reached 78%. To improve the PFL, Nam Air focuses on the attributes affecting their customers in making decisions to increase the percentage of passenger load. The research methodology in this research is the marketing research theory with approach using the discrete choice model. In making the stated preference (SP) questionnaire, the efficient design was used with NGENE software then collected 1880 observational data. The results of the questionnaire using the BIOGEME software to estimate the multinomial logit (MNL) model, then found significant attributes affecting passenger choice. By processing all attributes, the results show that only IN and JT price are significantly influential. Furthermore, the researchers processed all brand attributes with significant results. The price of the three alternative airlines is elastic. The researcher propose a Marketing Model with a three Sub Model, the model are achieve break even volume, adjust prices with discounts and promos, build a strong brand for Nam Air. The overall Sub Model arranged in 19 marketing programs. Next the Researcher also conducts Cost and Benefit analysis to produce the right implementation and marketing budget.Keywords: Airlines, attribute, dicrete choice model, elasticity, marketing strateg