Track: Business Management

Abstract

Airport management needs to balance various aspects of operations such as security, safety, space availability and schedule of airplane movement, local economy growth, and environmental sustainability. Soekarno-Hatta Airport in Jakarta, Indonesia, committed to adopt the Eco-Airport concept to transform itself into an eco-friendly airport. This article analyzed management needs to balance its efforts in environmental sustainability with the commercial aspect of the airport by being sensitive towards the preference of customers’ willingness to pay for the implementation of eco-friendly airport. This research was conducted from August to November 2020 to identify the current condition of the airport in the implementation of concept of eco-friendly airport, the customers’ willingness to pay, and analyze the contributing factors. Data was collected using Purposive Sampling Method by questionnaires. Majority of the respondents think that Soekarno-Hatta Airport still needs improvement in comfort, aesthetic, hygiene, and noise control. The 97 respondents interviewed expressed their willingness to pay additional IDR 13.865,98 to the Passenger Service Charge per person per flight in return for a better eco-friendly and more comfortable airport. Education level, income level, flight frequency, and comfort dummy, are defined at 10% significance on the value of willingness to pay.