Indo Aircraft Maintenance (IAM) is a company in Indonesia occupied in Maintenance, Repair, and Overhaul (MRO) which has the majority of the market share in the domestic area. Previously, in March 2020 large-scale social restrictions (LSSR) has been implemented globally that limits activities affecting the number of airline passengers. In order to recover, a formulation of a new business strategy is required. This research uses a qualitative method by doing a semi-structured interview with the

more »

... nior Manager of the Strategy Management division. The Author conducts an environmental analysis with Porter's 5 forces, PESTEL, and VRIO tools, while the strategy formulation was carried out using IFE, EFE, and Internal-External Matrix. The analysis represents, the company is suitable to carry out hold and maintain strategy where market penetration and product development are the alternative strategies. Market penetration is the right choice to create optimum results. The whole business-unit should not only focus on aircraft maintenance but another market segment also. Product development is not the main option that needs to be prioritized since it requires new technology capabilities to a tapped new customer.