ABSTRACT
Transport means efforts to move, drive, carry, or redirect objects from one place to other ones. Air transport is one of transport modes having characteristics of serving limited passengers and freights particularly for high value goods which need fast delivery and can penetrate to all areas that cannot be reached by other transport modes. The importance of air transport eases Malang inhabitants to come to Bali Island fast. Air transport is easier to take than land and sea transports. Air transport requires Airline Operating Cost for operating flight. It refers to the total cost of operating expenses of each airline company covering the total of direct and indirect operating costs. Analysis on Airline Operating Cost was carried out using RevisedMinisterial Decree Number 26 in 2010. Malang-Denpasar route from Abdul Rachman Saleh airport has travel distance 345 km/air, travel time 1 hour 5 minutes by ATR 72 propeller plane. The total Airline Operating Cost was IDR 53,932,497 per flight. The result of tariff evaluation based on the RevisedMinisterial Decree was IDR 1,057,500 with 70% load factor or around 51 passengers. The tariff based on Ministerial Regulation Number 126 in 2015 was IDR 1,159,200 but the tariff referring to the Ministerial Regulation Number 14 in 2016 was IDR 1,148,000 for upper limit and IDR 344,000 for lower limit, while the existing tariff is IDR 648,600. Thus, the existing tariff has been ideal.
