Airlines Not Changing Prices despite Urge from Ministry

TEMPO.CO, Jakarta - Domestic flight operators have not planned to make changes in the structure of airline ticket tariffs amid pressure from the Transportation Ministry and tourism service providers. The management of a number of airlines said the current rates are in accordance with regulations. 

"The tariffs will still be as they are now, depending on demand," Lion Air Group spokesman Ramaditya Handokok told Tempo yesterday, April 23.

Read also: KPPU Calls Gov't to Not Intervene Airlines Tariff

AirAsia Indonesia president director Dendy Kurniawan, said the airline, which only has eight domestic routes, never set prices that are not affordable. "For the [Eid al-Fitr] season demand and prices are always up, but definitely still affordable," he said yesterday.

In mid-April, Garuda Indonesia corporate secretary Ikhsan Rosan told Tempo that his airline had never go near nor above the highest price limit. "We set the current price, of course there must always be adjustments," he said.

Complaints about a surge in airfares have surfaced since the end of 2018. Starting from an open petition, demands for reduced flight fares came from the tourism businesses as well.

Rudiana, deputy chairman of the Indonesian Air Ticket Sales Companies Association (Astindo), said domestic ticket bookings dropped by 10-15 percent until the third week of this month.

Astindo noted a large shift in domestic passengers to foreign routes. "Passengers find it difficult to pay for these tariffs, even though this is a low season," Rudiana said.

TEMPO.CO