This paper compares Garuda Indonesia and Lion Air, two leading Indonesian airlines, focusing on their operational, financial, and strategic differences. Garuda, a state-owned full-service airline, targets business and international travelers with a focus on premium services and safety, while Lion Air, a low-cost carrier (LCC), caters to budget-conscious passengers through affordability and extensive domestic coverage. The study highlights Indonesia’s reliance on air travel due to its archipelagic geography and explores how these airlines shape market competition and passenger experiences. Employing qualitative and quantitative analysis, the paper uses industry reports, financial data, and customer reviews to examine their operational efficiency and market strategies. It finds that while Lion Air’s low-cost model is cost-effective, its safety record impacts customer trust. Garuda Indonesia, on the other hand, struggles with financial sustainability. The study suggests that a balanced regulatory approach could enhance national connectivity and economic growth by supporting both service models.