Garuda to Exclude Airport Tax Beginning October

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  • TEMPO.CO, Jakarta - National flag carrier Garuda Indonesia will separate the passenger service charge (PSC), known as the airport tax, from its basic fare structure starting in October 1, 2014 after having integrated it into its fare structure since 2012.

    Garuda Indonesia regional manager Gatot Rijadi said in Kendari on Monday the removal of the airport tax from Garuda's fares structure is done because the cooperation agreement, which forms the basis for the incorporation of airport tax into Garuda's airfares, between airport operators Angkasa Pura I & II and Garuda Indonesia is expiring on September 30, 2014.

    "In the past two years, Garuda Indonesia's customers do not need to pay the airport tax because it is included in ticket prices. Beginning October, the authority to impose the airport tax will be returned to individual airports," said Gatot.

    "The two-year period was actually a bridging one to allow airport operators to prepare their own passenger service charge, which they can apply to airline operators, as per International Air Transport Association (IATA) guidelines," said Gatot.