Main Article Content
Abstract
This study examines the connection between low-cost airline fare policy and passenger volume at Hang Nadim Airport, with Citilink serving as a specific example. The study utilised a mixed-method design, incorporating monthly operational passenger data spanning January 2021 to December 2024, alongside a survey of 100 Citilink passengers, interviews, observations, and document analysis. A simple linear regression model was employed for quantitative analysis, in which fare policy was represented by a dummy variable and monthly passenger volume was the dependent variable. The results show a statistically significant and positive correlation between fare policy and passenger volume, with a coefficient of 6,615.724, a t-statistic of 2.268, and a p-value of 0.028. The average monthly passenger volume during the policy period coded as one was approximately 6,616 passengers higher than that in the reference period, as indicated by this result. The adjusted R-squared value of 0.081 indicates that fare policy accounted for only 8.1% of the variation in passenger volume, implying that seasonal demand, flight frequency, route availability, capacity, and other operational factors also influenced passenger-volume fluctuations. According to the passenger survey, 68% of respondents had negative views about fare increases, and a majority of 72% were dissatisfied with the introduction of baggage charges. Research indicates that competitive fare policies should be complemented by clear disclosure of extra fees and regular assessments of baggage-fee policies. The statistical results should be viewed as indicating an association rather than a direct causal relationship with fare policy.