Lion Air Lowers Airlines Tariff by 25 percent

TEMPO.CO, Jakarta - Several national air carriers have finally lowered airlines tariffs starting today, May 20, following the issuance of Transportation Ministerial Decree No. 106/2019 concerning airfare ceiling price on May 15.

Based on Tempo observation through online ticket booking service, Traveloka, flight tickets of low-cost carrier Lion Air for Jakarta-Padang route on June 3 or D-2 of Eid el-Fitr decreased to Rp1.24 million today, from previously at Rp1.66 million. This means the drop reached 25.3 percent.

Meanwhile, on June 7 or D+1 of Eid al-Fitr, the tariff is declined by 14.4 percent at Rp1.42 million from initially Rp1.66 million.

Read: Airfare Hike; Land Transport Homecoming Travelers to Increase

The lowered tariff is in line with the remark conveyed by Transportation Minister Budi Karya Sumadi. “Inshallah, airlines fares will decrease today, besides, there will be several transitions and also a campaign of 50 percent. [I] hope it will reduce flight ticket price,” said Budi Karya when met in Brebes Barat toll gate, Central Java, Monday, May 20.

Based on the regulation, Budi added, prices of domestic flight tickets must be lowered two days after the decree issuance. “[The policy] gives a week, so if within a week an airline does not drop its prices, we will not concern on the airline,” he noted.

The drop in airlines tariff was also in accordance with a regulation inked by Budi Karya, in which the airfare ceiling price of Jakarta-Padang route is Rp1.47 million and its floor price is Rp517,000. Lion Air even lowered the price higher than Budi Karya’s recommendation at 12-16 percent.

FAJAR PEBRIANTO