| dc.description.abstract | The airline industry is vital to the national economy by providing connectivity. Despite
its crucial role, the airline industry constantly struggles to meet capital costs and maintain
long-term profitability. This research analyses the business and financial performance of
PT Garuda Indonesia and Singapore Airlines Ltd. as companies operating within the
ASEAN airline industry from 2020 to 2024. The study utilises a comprehensive analytical
framework that includes business strategy, financial analysis, and prospective analysis. A
descriptive-qualitative method is applied to provide a thorough understanding of both
companies' strategic responses and operational outcomes. The results of the analysis
indicate that the ASEAN airline industry operates in a highly competitive environment.
Further PESTLE analysis identifies macro-environmental factors shaping industry
dynamics. A comparison of business performance through SWOT analysis also shows
that both companies possess brand recognition strength and government support, but
unhealthy financial conditions and governance issues burden Garuda Indonesia. Financial
analysis underscores the extreme difficulties faced by Garuda Indonesia based on
negative profit and extremely high debt-to-asset ratios. Conversely, Singapore Airlines
shows consistent revenue recovery, strong cost management, and a solid capital structure.
The Altman Z-Score bankruptcy prediction confirms both companies are in a zone of
financial distress, but Garuda Indonesia has a higher risk of bankruptcy than Singapore
Airlines. Both companies are also intrinsically undervalued, but Singapore Airlines' more
stable financial position makes it a better investment choice than Garuda Indonesia. | en_US |
