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Jakarta Post

RI aviation industry 'should consolidate'

  • The Jakarta Post

Jakarta   /   Wed, May 7 2008   /  09:39 am

With cutthroat competition in the country's aviation industry and soaring oil prices, a consolidation within the sector is the way forward, national flag carrier Garuda Indonesia Airlines said Tuesday. "The way I see it, there is a distinct possibility there will be fewer airlines in the country soon... Other airlines know this too, whether they like it or not," Garuda president Emirsyah Satar said. The imminent increase in domestic fuel prices and continuing global uncertainty over skyrocketing oil prices will take its toll on local airlines, he said. The government said it would raise fuel prices to control the burgeoning fuel subsidy. The resulting inflation would affect people's spending power and consequently discourage them from traveling by air. The price of jet fuel has also been increased, forcing Garuda to raise its fuel surcharge from ab...