Govt Allows Airlines to Increase Flight Ticket Prices

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Markus Wisnu Murti

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  • An airplane is about to land on Runway 3 of the Soekarno-Hatta International Airport, Tangerang, Banten, Thursday, January 23, 2020. TEMPO/Subekti

    An airplane is about to land on Runway 3 of the Soekarno-Hatta International Airport, Tangerang, Banten, Thursday, January 23, 2020. TEMPO/Subekti

    TEMPO.CO, JakartaThe Coordinating Ministry for Maritime Affairs and Investment has permitted national airlines to increase their flight ticket prices so long as they are still referring to the price ceiling or TBA. This is because the government still limits the capacity of passengers in the wake of the COVID-19 pandemic.

    “[Airlines have] the opportunities to raise ticket prices if they cannot finance their operational costs,” said the Deputy of Infrastructure and Transportation Coordination, Ridwan Djamaluddin, in a virtual press conference on Monday, June 15.

    Ridwan said the policy was to compensate for the reduced passenger capacity. The government through the circular of the Director-General of Civil Aviation of the Transportation Ministry No. 13/2020 noted that the maximum airline transport quota is 70 percent of the total seats.

    However, he reminded that the price hike should be still in accordance with the airfare’s upper cap stipulated in the Transportation Minister’s Decree No. 106/2019. Ridwan also appealed to airlines not to use this moment to seek high profits.

    “Because we are in an emergency condition. This can't be deemed as normal,” he added.

    Flag carrier Garuda Indonesia previously admitted that it was mulling to suggest the Transportation Ministry to set a higher price ceiling. “We have discussed with many parties about the increase in TBA and TBB (price floor). This (discussion) is still afoot while considering other matters,” said Garuda CEO Irfan Sebuahutra to Tempo on May 28, 2020.

    FRANCISCA CHRISTY ROSANA