Analysis of Ability to Pay and Willingness to Pay of Aircraft passengers toward Jakarta Surabaya High-Speed Train

Abstract

The number of aircraft passengers who travel from Jakarta to Surabaya based on data from PT. Angkasa Pura II is increasing rapidly every year within 2012-2017. This amount is much greater when compared with the number of executive train passengers that also increased in the same period of the years. This indicates that passengers tend to choose aircraft as a mode of transport for this route. This could be due to the shorter travel time and comfort offered. However, the high number of aircraft passengers for this route each year can lead to a decrease in airport capacity in serving aviation traffic demand which rapidly increases. This indicates the need for alternative transportation modes to complement the high demand of passengers on the Jakarta-Surabaya route. The Indonesian Government offers the alternative transportation mode that is Jakarta-Surabaya highspeed train to overcome this. Since fare determination for public transport is one crucial matter, it is need to know the ability to pay (ATP) and willingness to pay (WTP) from the passengers. This research will study the ATP and WTP from the aircraft passengers if Jakarta-Surabaya high-speed train will be operated by Indonesian Government. This study compares ATP and WTP to some ticket price intervals of high-speed train. Aircraft passengers’ survey has been conducted in airports in Jakarta and Surabaya to gain data of ATP and WTP through interview and questionnaire methods. ATP measurement is using Travel Cost method while WTP using Stated Preference method. As a result, this study offers a range of ticket price deemed to be in line with ATP and WTP of passengers.