Suharto Abdul Majid Primary Author

National airline companies in Indonesia generally have not had optimal advantages. Such a condition needs a thorough analysis and appropriate strategy implementation. This research aims to study the creation of corporate advantage in Indonesia’s domestic airlines through a market-driven strategy based on market attractiveness and resource capability. This study uses the method of explanatory survey, descriptive and verificative with data analysis using Structural Equation Modeling (SEM) based on Partial Least Square (PLS). The analysis unit in this study is Indonesia’s national airlines while the observation unit is the management of Indonesia’s domestic airline companies. This study is cross sectional in 2016. The result shows that market attractiveness, resource capability, and market-driven strategy simultaneously affect the corporate advantage of Indonesia’s airline industry. In partial, only resource capability does not influence the creation of corporate advantage, i.e. it affects market-driven strategy as the mediating variable. The recommended strategy model is the one for creating corporate advantage of airline companies through market-driven strategy based on market attractiveness and resource capability. Keywords: Market Attractiveness, Resource Capability, Market-Driven Strategy, Corporate Advantage, Indonesia’s Airline Industry.