Thursday, 27 February 2020

Garuda Indonesia Awaits KPPU on Airfare Cartel Practice



Laila Afifa

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  • Garuda Indonesia.

    Garuda Indonesia.

    TEMPO.CO, Jakarta - State-owned air carrier Garuda Indonesia awaited the decision of the Business Competition Supervisory Commission (KPPU) in light of an alleged cartel practice on airfare.

    “We are now waiting for KPPU statement,” said Garuda Indonesia president director Ari Askhara after joining safety simulation in Garuda Indonesia Training Center, Jakarta, Wednesday, January 23.

    Ari said that KPPU had summoned his party two times over Garuda Indonesia's decision to take over the operational management of Sriwijaya Air Group and an alleged cartel practice.

    Read: Garuda Indonesia Flight Fares Drops, Jakarta - Aceh Included

    He explained that his corporate had exposed KPPU with the ticket price determination when the tariff was set and its relation with the Indonesia National Air Carriers Association (Inaca). “We have told everything,” he noted.

    As for its ties with Inaca, Ari asserted that his company more discussed technical issues of airlines, instead of airfare. “We cannot set the airfare,” he added.

    Earlier, KPPU called for Inaca and Garuda Indonesia as well as Transportation Ministry regarding an alleged cartel practice on simultaneous airfare hike. KPPU is still examining the issue in terms of cost structure and other components.