Garuda Indonesia, Lion Air to Lower Ticket Price as Govt Scraps Airport Tax

TEMPO.CO, Jakarta - Garuda Indonesia and Lion Air Group airlines welcomed the government’s stimulus policy on the subsidy of the passenger service charge (PJP2U) or airport tax.

Garuda Indonesia CEO Irfan Setiaputra said on Thursday that his side was ready to slash the tax included in the tariff of flight tickets starting October 23 until December 31, 2020. The policy would be valid in ten airports served by the flag carrier out of 13 airports determined by the government.

“We have also ensured the readiness of supporting infrastructure in adjusting the tariff that will be applied in all channels of ticket sales in accordance with the stimulus policy by the Transportation Ministry,” said Irfan in a written statement on Thursday, October 22.

He considered the provision of the stimulus as a significant strategy, given that airlines were facing challenges due to the COVID-19 pandemic. He hoped it would support the recovery of airlines' performance, particularly in order to attract the public to use air transport services again.

“We surely hope that this stimulus policy will bring positive impacts on the increasing trend of passenger movement on domestic flights,” Irfan added.

He believed a solid ecosystem of the aviation industry between the regulator and related stakeholders could serve as a fundamental foundation in supporting the business continuity amid the pandemic.

The Transportation Ministry earlier announced the exemption of the airport tax for passengers who purchase flight tickets from October 23 until December 31, 2020, with the same departure date at certain airports.

Read: Govt Exempts Passengers from Airport Tax in 13 Airports

CAESAR AKBAR