Govt Sets 35 pct Lower Tariff Limit for Domestic Economy Flight
28 August 2018 15:50 WIB
TEMPO.CO, Jakarta - The Transportation Ministry has confirmed its latest policy on the lower tariff of domestic economy flights which would see ticket prices increased by 5 percent to be 35 percent from the upper tariff limit.
Transportation Minister Budi Karya Sumadi said the increase will be set next month.
“The lower tariff limit (TBB) will be increased by 5 percent to be 35 percent from the upper tariff limit (TBA),” said Budi Karya during a state-owned company seminar today, August 28. The TBB was initially set at 30 percent from the TBA before the 5 percent increase.
He further explained that the amount is still lower compared with the request from the Indonesia National Air Carriers Association (INACA), which was at 10 percent. The Transportation Ministry claims that it has its own calculation that eventually led to the 5 percent increase.
The Air Transportation Directorate General will constantly evaluate tariffs every year which will affect the continuity of airline activities. The last TBB adjustment was conducted in January 2016.
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