Gov't Lowers Airlines Tariff for Low-Cost Carriers



Mahinda Arkyasa

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  • TEMPO.CO, JakartaThe government has agreed to lower domestic airlines tariff for low-cost carriers (LCC) on certain schedules. This measure was taken following public concerns regarding expensive airline ticket prices.

    "In response to public demand and to maintain the sustainability of the aviation industry, [we have] taken a conclusion and formulate a regulation on the reduction of airline tariffs for LCC. Other LCCs are allowed [to follow]," said Coordinating Minister for Economic Affairs Darmin Nasution on Thursday, June 20, 2019.

    According to Darmin, the public are concerned and had the rights to enjoy affordable price. Darmin explained that the price reduction will only valid for certain schedules.

    "But that gives a chance and an opportunity for the public who wants more affordable flight tickets," Darmin added.

    Therefore, budget airlines were given a week to set the schedule, route, and tariff.

    Previously, Transportation Minister Budi Karya Sumadi issued a regulation regarding the reducton of the upper limit tariff (TBA) for airline tariffs at 12 to 16 percent. However, Darmin said that according to the public the policy was not enough.