Covid-19 pandemic is a significant event causing extreme uncertainties in various aspects of life globally, including in the business sector. Many businesses are overwhelmed by this uncertainty. However, some businesses can survive and use this pandemic as momentum to show off their resilience and excellence.
One of the companies that can deal with the pandemic competently is PT Angkasa Pura II. The company, engaged in aviation services, especially airport management in the Western Part of Indonesia, has demonstrated its expertise in business sustainability in uncertain times. This attracted the attention of the SBM ITB Strategic Marketing Executive MBA (SMEMBA) Study Program to make PT Angkasa Pura II a real example of how to run a good business strategy in the era of uncertainty.
Therefore, SMEMBA SBM ITB invited Muhammad Awaluddin, the CEO of PT Angkasa Pura II (Persero), as a guest lecture on Saturday (06/11/2021). The lecture entitled “Managing Business Sustainability in Extreme Uncertainty” explained how the business sustainability of PT Angkasa Pura II in the face of the Covid-19 pandemic as a form of extreme uncertainty.
PT Angkasa Pura II operational holds 20 major airports in Indonesia. One of the airports operating despite the pandemic is Soekarno Hatta International Airport, the largest in Indonesia and one of the most respected in the region with the largest traffic rate (passenger volume) in Southeast Asia.
The peak of traffic at Soekarno Hatta Airport itself occurred in 2018, with the number of passengers reaching 112 million. Due to restrictions on mobilization during the pandemic, traffic decreased by up to 60% in 2020 compared to the previous year. Meanwhile, in 2021, there will be a decrease of 42% compared to 2020. Although the decline seems high, the percentage is not as severe as the International Civil Aviation Organization (ICAO) predicted. Moreover, the International Air Transport Association (IATA) also provides similar data.
Despite the significant decrease in traffic rate, PT Angkasa Pura II is still proud of its performance. As a sector that relies on government policies that tend to change continuously, the company can still improve in 2020 to recover from the effects of the pandemic. Even in 2021, the company’s performance also increases.
Transforming the Brand
When it comes to marketing, a business needs to look at its market first. In the context of the aviation industry, the CEO, called ‘Awal,’ revealed that 68% of passengers came from the millennial generation. This data has implications for changes in the structure and management of passenger services at the airport.
Millennials are known to fly a lot as single travellers. A clear example of implementing service strategies for millennials is increasing self-checking counters to avoid queues accompanied by a digital check-in process and structuring airport designs that are made “Instagrammable.”
To provide a sense of security for passengers to fly and travel during the pandemic, the company is transforming its biosecurity system by implementing strict health protocols to maintain ‘customer trustworthiness.’
That is why, in July – December 2020, PT Angkasa Pura II actively campaigned for a safe travel branding campaign to eliminate the ‘fear’ of passengers on the way. The campaign was carried out to convey three main messages, namely:
- PT Angkasa Pura II is a company that is in line with the government regulation,
- Availability of safe and comfortable services at every PT Angkasa Pura II airport,
- Corporate action of PT Angkasa Pura II during the COVID-19 pandemic.
The campaign carried out must be accompanied by the strategic use of social media communication. Not only by corporations, but all stakeholders can also use their social media accounts to convey campaigns carried out by the company. Awal said that corporate communication strategy and evaluation control were carried out strictly.
“Precisely, in the current situation, we must show our face regularly and spread information so that people are not confused by the changes are happening,” said Awal.
As the CEO, he always encourages the company to upload news at least two to three times a week about the latest report and innovations made by the company, including collaboration with other parties in handling the pandemic. Simple information, such as how much the PCR test costs at the airport, is also reported.
Not surprisingly, in 2020, PT Angkasa Pura II won a gold winner in the PR Award as an appreciation of the company’s success in the field of corporate communication to maintain company branding in the era of uncertainty.
