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Jakarta Post
The Jakarta Post
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Government increases price floor of airplane tickets

  • News Desk
    News Desk

    The Jakarta Post

Jakarta | Tue, August 28, 2018 | 03:34 pm
Government increases price floor of airplane tickets A Garuda Indonesia aircraft takes flight. (Shutterstock.com/e X p o s e)

The government has decided to increase the price floor of airplane tickets from 30 to 35 percent of the price ceiling in response to requests from a number of airlines, Transportation Minister Budi Karya Sumadi said in Jakarta on Tuesday.

Budi said the government would announce the start of the new airplane ticket price scheme in the near future, pending a dissemination program held by the Office of the Coordinating Maritime Affairs Minister.

National-flag carrier Garuda Indonesia president director Pahala N. Mansury welcomed the government’s decision to increase the airplane ticket price floor, although he previously demanded it be increased to 40 percent.

“The [operational] costs have increased significantly. But, at least [with the increase], there will be improvement [in our revenue],” Pahala said as reported by kompas.com. He stressed that the increase of aviation turbine fuel (ATF) prices had long affected the airline.

He said the government had invited representatives from the aviation industry to discuss the issue, although he said he had not received a copy of the government’s decision.

Garuda Indonesia was among the aviation companies that demanded the increase of the airplane ticket price floor, as regulated under Transportation Minister Regulation No. 14/2016 on the calculation formula for deciding price ceilings and floors of economic class airplane tickets. (bbn)  

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