The air transportation industry plays a strategic role in supporting Indonesia's economic growth, particularly in facilitating passenger mobility, cargo distribution, and regional connectivity. Given its crucial role, a comprehensive analysis is necessary to evaluate the operational efficiency of domestic airlines. This study analyzes the operational efficiency of Indonesian domestic airlines from 2019 to 2023 using the Data Envelopment Analysis (DEA) method with a Variable Return to Scale (VRS) assumption and output orientation. The results indicate that airline efficiency varied throughout the period, with low-cost carriers (LCC) showing more fluctuating efficiency levels compared to full-service carriers. This study recommends that airlines enhance operational flexibility, diversify revenue sources, and invest in data-driven technologies to support more effective decision-making. Furthermore, regulators are encouraged to support airline innovation efforts to improve operational efficiency and strengthen the competitiveness of Indonesia's domestic aviation industry.
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