Prioritizing airport development plan to optimize financial feasibility

Abstract

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.

Keywords

• airport choice
• financial feasibility
• infrastructure
• multi-criteria weighting
• privatization