Sustainable Development Strategy of Low-Cost Airlines: Empirical Evidence for Indonesia Based on Analysis of Passenger Loyalty

The rapid progress in the competitive business environment has increased customer expectations and demands, thus leading to a situation where many companies are competing fiercely, especially low-cost airline or carriers (LCCs). company carries out strategy of providing satisfaction for its passengers generate great loyalty. purpose this study is find what factors can affect passenger loyalty, such as service quality (SQ), price (P), (S), perceived value (PV) on LCC airlines Indonesia. This used quantitative methods through surveys which were conducted 313 respondents Indonesian, via online questionnaire data collection July–August 2021. To test relationship between variables, statistical analysis with LISREL structural equation modelling (SEM). present was concerning Indonesia refers only Indonesian consumers. There 7 hypotheses study, 4 confirmed 3 invalidated. Some results obtained show that, case reference consumers substitution offered by LCCs, we have discuss atypical manifestations consumer behaviour (good SQ does not necessarily lead S lower S, etc.). At same time, shows that loyalty remains essential factor survival LCCs market.