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Jakarta Post

Rationalization behind domestic ticket price policy

  • Ridha Aditya Nugraha

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PREMIUM
Jakarta   /   Mon, July 29, 2019   /  11:36 am
Rationalization behind domestic ticket price policy Airbus A320 of low cost carrier Citilink takes off during the launching of Denpasar to Dili route in Ngurah Rai Airport in Bali. (Antara/Nyoman Budhiana)

The government has made various efforts to reduce domestic airfares, from attempting to lower the price ceiling by 12 to 16 percent in May, to asking low-cost carriers (LCC) to reduce ticket prices for certain routes during a certain period. The latter policy only came into force on July 11 — slightly overdue from the original deadline of July 1. The government’s agreement with LCCs to reduce ticket prices by 50 percent from the price ceiling is rather unusual. Only Citilink and Lion Air have agreed to adhere to the policy. The provision applies only to particular flights boarding on Tuesday, Thursday and Saturday at between 10 a.m. and 2 p.m. The number of routes is limited and the policy only applies to routes serviced by jet aircraft. Since many regional routes are also served by propeller planes, this policy feels discriminatory and unreliable in guaranteeing region...

Disclaimer: The opinions expressed in this article are those of the author and do not reflect the official stance of The Jakarta Post.