Garuda Indonesia to Comply with Government's Order on Airfare

27 March 2019 10:01 WIB

TEMPO.CO, JakartaGaruda Indonesia Group pledged it would comply with the government’s rule related to the plan in lowering airfare in the near future. Garuda Indonesia VP Corporate Secretary, Ikhsan Rosan, said his side was still waiting for the decision.

“In principle, we must be thorough before drafting a lower tariff because we have to recalculate the cost structure. But, we will follow orders issued by the government,” said Ikhsan on Tuesday, March 26.

An issue about the lower rate of flight ticket has again become public limelight following the leak of meeting minutes of Coordinating Ministry for Maritime Affairs that was held on Monday, March 25.

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

As noted in the document, Transportation Minister Budi Karya Sumadi still assessed that the airfare was too pricey despite the drop rate of avtur, and several airlines even received special payment for the avtur purchase.

According to Budi Karya, the government had demanded lower ticket price but airlines still overlooked the request, causing an ongoing problem to date.

“Particularly Garuda Indonesia that is a state-run company and the leading national airlines. The tourism industry and several related sectors are affected by the expensive flight ticket,” said Minister Budi as quoted from the minutes.

Garuda Indonesia Group and Sriwijaya Air Group had lowered its airfare by 20 percent for all domestic flights in February 2019. The price reduction was taken following the Indonesia National Air Carrier Association (INACA)’s demand.

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