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Coordinating Minister Luhut Binsar Pandjaitan responded to a report filed by INACA related to policies on the reduction of airlines tariff.
The government planned to hold another meeting in light of the technical strategy to lower airlines tariff of low-cost carrier (LCC) today.
YLKI head Tulus Abadi considered the decrease in airlines tariff that would be valid starting this week was only a marketing gimmick.
The Aviation Law No. 1/2009 gives the transportation ministry the authority to set the TBA for economy class airfares.
An aviation observer opined one of the policies the government could take to lower airlines tariff is to grant tax incentives for aviation components.
Lion Air Group will be providing special promotion tickets by reducing the price by 50 percent of the upper limit tariffs.
The government has agreed to lower domestic airlines tariff of low-cost carriers (LCC) on certain schedules.
The government would loosen regulations on the permit of foreign airlines to operate domestic flights to improve the national aviation industry.
Transportation Minister Budi Karya Sumadi ensured his ministry would not intervene in setting airlines tariff, yet manage upper and lower tariff limit
Several air carriers have lowered airlines tariffs starting today, May 20, following the Transportation Ministerial Decree on airfare price ceiling.
Transportation Ministry determined to lower the upper limit tariff of airlines ticket by 12-16 percent to suppress the trend on the rocketing airfare.
The government has officially determined that the airfare upper limit is lowered by 12-16 percent.
Transportation Ministry has recently concerned about a recommendation on the removal of price ceiling (TBA) and price floor (TBB) of airfare.
Responding to the new regulation concerning airfares, Garuda Indonesia said that drop in ticket price ceiling would not beset the business.
Transportation Minister Budi Karya Sumadi targeted the revised ceiling price of airfares would be completed within a week.
State-owned Enterprises (SOE) Minister Rini Soemarno was reluctant to point out issues on the current high airlines tariff.
Transportation Minister Budi Karya Sumadi said airfares remain high despite his orders to bring them down.
The increasing airlines tariff had caused domestic passengers to seek other modes of transportation.
Coordinating Minister for Economic Affairs vowed to hold a special meeting for talks on airfare with SOE Minister and Garuda Indonesia.
The Transportation Ministry will issue a new regulation if airlines refuse to take the initiative to reduce ticket price.