Hit by Dollar Strength, Prices on Domestic Flights to Increase
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Sabtu, 8 Februari 2014 18:24 WIB
Pesawat Mandala Airlines. TEMPO/ Aryus P Soekarno
TEMPO.CO, Jakarta - Transportation Ministry's air transportation director general, Herry Bakti Gumay, said they would set the regulation on surcharge tariffs for domestic flights by next week. "We are aware of the situation and condition of the increased fuel price, and high dollar exchange rate, which have made it difficult for airliners to survive," he said yesterday.
The tariffs to be implemented are Rp60,000 per hour for jet aircraft, and Rp50,000 for turbo propeller aircraft. Regarding the ceiling price, it is referring to the Transportation Ministerial Regulation Number 26 of 2010 on the ceiling price mechanism.
According to Herry, the regulation is to maintain the aviation industry’s growth to remain stable in the midst of sluggish economy. Due to the weakening economy, two aviation companies have to cease operating. Meparti has stopped operating since February 1 due to financial deficit. As a result, the company’s 19 routes have been offered by the Transportation Ministry to other aviation companies to take over. Meanwhile, Tiger Air Mandala has announced to temporarily close its 9 routes as of February 10.
