Plane Tickets Lower-Limit Tariff to be Reduced

TEMPO.CO, Jakarta - The Transportation Ministry intends to decrease lower-limit tariffs for economy-class airplane tickets. The lower-limit tariff will be 30 percent of the upper-limit tariff.

"The regulation is now being prepared and will be signed by the minister [of transportation]," said Djoko Murjatmojo, secretary for the air transportation directorate general at the Transportation Ministry on Wednesday, November 12, 2014.

According to Djoko, the tariff reduction was agreed after a meeting between airlines and Transportation Minister Ignasius Jonan last week. In the meeting, airlines demanded lower-limit tariff so that they could sell cheaper tickets. "There will be another ministerial regulation. Only one article is changed," said Djoko.

The increase of upper-limit tariff was decided on October 1, 2014, through the Transportation Ministerial Regulation No. 51/2014. However, before the regulation was implemented, airlines had voiced their objections.

The article about airlines' obligation to apply for a license if they want to sell tickets under 50 percent is considered to be burdensome. In response, the Transportation Ministry plans to reduce lower-limit tariff from 50 percent to 30 percent of the upper-limti tariff. However, airlines still have to apply for a permit before they can sell tickets under 30 percent of the upper-limit tariff.

KHAIRUL ANAM