PRIORITIZING AIRPORT DEVELOPMENT PLAN TO OPTIMIZE FINANCIAL FEASIBILITY

Air transportation plays a significant role not only in connecting remote and isolated areas but also in enhancing national economic development. Indonesia, a country consisting of more than 17,000 islands, has 162 airports administered by its government through the Directorate General of Civil Aviation (DGCA) of the Ministry of Transportation. In response to budget constraints to expand these airports for services, the government has initiated collaboration with the private sector to develop airports. This paper aims to assist decision makers in deciding which of the 162 airports should be prioritized for partnership based on project feasibility. The study used qualitative and quantitative approaches, employing an analytical hierarchy process (AHP) method, multi-criteria weighting, and financial feasibility to analyze the findings. As a result, the prioritized airports recommended for partnership with the private sector are expressed in a quadrant priority of scale.

[1]  Stephen B. Billings,et al.  The location quotient as an estimator of industrial concentration , 2012 .

[2]  Sushil Kumar,et al.  Analytic hierarchy process: An overview of applications , 2006, Eur. J. Oper. Res..

[3]  M. Vanderschuren,et al.  Analytic Hierarchy Process assessment for potential multi-airport systems – The case of Cape Town , 2014 .

[4]  Hamzah Bin Hj Abdul Rahman A Review on the Issues and Strategies of StakeholderManagement in the Construction Industry , 2007 .

[5]  Thomas J. Crowe,et al.  Multi‐attribute analysis of ISO 9000 registration using AHP , 1998 .

[6]  A. Chan,et al.  Review of studies on the Critical Success Factors for Public–Private Partnership (PPP) projects from 1990 to 2013 , 2015 .

[7]  Caglar Ucler,et al.  Brainstorming the cryoplane layout by using the iterative AHP-QFD-AHP approach , 2018 .

[8]  Iyad Alomar,et al.  Innovation in airport design , 2017 .

[9]  K. Morrissey Producing regional production multipliers for Irish marine sector policy: A location quotient approach , 2014 .

[10]  M. Bohanec,et al.  The Analytic Hierarchy Process , 2004 .

[11]  V. Fasone,et al.  Airport ownership and financial performance: Evidence from Italy , 2014 .

[12]  Martin H. Thelle,et al.  Airport competition in Europe , 2017 .

[13]  Laurent Carnis,et al.  Nusantara: Between sky and earth could the PPP be the solution for Indonesian airport infrastructures? , 2013 .

[14]  Paul Hooper,et al.  Privatization of airports in Asia , 2002 .

[15]  Tae Hoon Oum,et al.  Air transport liberalization and airport slot allocation: The case of the Northeast Asian transport market , 2014 .

[16]  Rigas Doganis,et al.  The Airport Business , 1992 .

[17]  Timothy F. Leslie,et al.  The spatial food environment of the DC metropolitan area: Clustering, co-location, and categorical differentiation , 2012 .

[18]  T. Zagloel,et al.  Producing Alternative Concept for the Trans-Sumatera Toll Road Project Development using Location Quotient Method , 2017 .

[19]  Peter Bernard Marlow,et al.  Strengths and weaknesses of short sea shipping , 2002 .

[20]  Nigel Halpern,et al.  Air transport service provision and management strategies to improve the economic benefits for remote regions , 2012 .

[21]  Ian B. Thompson,et al.  AIR TRANSPORT LIBERALISATION AND THE DEVELOPMENT OF THIRD LEVEL AIRPORTS IN FRANCE (IAN B. THOMPSON (UNIVERSITY OF GLASGOW). , 2002 .

[22]  David Banister,et al.  Role of the Railways in the Future of Air Transport , 2007 .

[23]  Roy Woodhead,et al.  An alternative theory of idea generation , 2008 .

[24]  Kevin Cullinane,et al.  The impact of airport and seaport privatization on efficiency and performance: A review of the international evidence and implications for developing countries , 2012 .

[25]  Fang Su,et al.  The privatization and commercialization of China's airports , 2008 .

[26]  Youn Chul Choi,et al.  Analytic Hierarchy Process Approach for Identifying Relative Importance of Factors to Improve Passenger Security Checks at Airports , 2006 .

[27]  Alexander T. Wells Airport Planning & Management , 1986 .

[28]  Thomas L. Saaty,et al.  DECISION MAKING WITH THE ANALYTIC HIERARCHY PROCESS , 2008 .

[29]  Sai On Cheung,et al.  An analytical hierarchy process based procurement selection method , 2001 .

[30]  Brian Knutson,et al.  The risk matrix , 2015, Current Opinion in Behavioral Sciences.

[31]  Mohammed Ali Berawi,et al.  Towards Self-sufficient Demand in 2030: Analysis of Life-cycle Cost for Indonesian Energy Infrastructure , 2016 .

[32]  S. Ismail Critical success factors of public private partnership (PPP) implementation in Malaysia , 2013 .

[33]  Jin-Woo Park,et al.  The privatization of Korea’s Incheon International Airport , 2011 .

[34]  Heng Li,et al.  Application of the analytic hierarchy process (AHP) in multi-criteria analysis of the selection of intelligent building systems , 2008 .