Incentives Set for LCCs Following Lowered Airfare Regulation

TEMPO.CO, Jakarta - Airport management announced that they are willing to provide service incentive schemes for low-cost carriers (LCC) following the government attempt to lower domestic flight airfares.

State-owned airport operator Angkasa Pura II president director Muhammad Awaluddin said that it will shift from marketing-based schemes to operations-based which he deemed to be much more effective for LCC airlines.

“The meeting produced an incentive scheme linked to airlines’ operational needs,” said Awaluddin on Monday.

He further expressed his gratitude on the decision for LCC to drop its airfares during certain flight hours, which could potentially improve the utilization of airport operating hours. The LCC airlines will also take over an airport’s operations during low hours.

Meanwhile, Angkasa Pura I president director Faik Fahmi said that he is ready to support the government’s attempt to lower the airfare of domestic flights.

“We proposed several options for the government. In principle, we support government regulation,” said Faik.

Previously reported, domestic low-cost-carriers (LCC) will offer 50 percent discounts from its upper price cap starting on Thursday, July 4^th, which will only be offered every Tuesday, Thursday, and Saturday. The concession will only be made available for flight departures between 10:00 to 14:00 at each local airport.

BISNIS.COM

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