Suharto Abdul Majid Primary Author

The environment of the airline industry in Indonesia is very dynamic and the Indonesia domestic flight market has a very high potential so that the competition of aviation business in Indonesia is increasingly open and tight. Unfortunately, Indonesia national airline companies have not had an optimal level of excellence, such as the aspects of operational performance, OTP, flight safety and security performance, and financial performance. This research aims to analyze the creation the corporate advantage of the airlines in Indonesia through market-driven strategies that are appropriate and effective. This research is an explanatory survey and is based on the nature of cross-sectional time coverage in the year 2016. The research uses a descriptive and verivicative method with data analysis using Partial Least Square (PLS)-based Structural Equation Modelling (SEM). The unit of analysis in this research is the national airline companies in Indonesia while the unit of observation is the top management of Indonesia's domestic airlines. The test results show that the creation of the excellence of Indonesia domestic airlines can be done through the implementation of market-driven strategies in appropriate and effective ways. In this research, market-driven strategy has positive and significant effects on the advantage of Indonesia domestic airline companies.