The Jakarta Post
Flag carrier PT Garuda Indonesia announced on Wednesday that it had cut its ticket prices by 20 percent in response to complaints about the high cost of domestic air travel.
In addition to full service Garuda Indonesia, the Garuda Indonesia Group also operates low-cost carrier (LCC) PT Citilink Indonesia, Sriwijaja Air and NAM Air.
“This is in line with the aspirations of the people and associations of some industries as well as guidance from the President about the need to decrease airplane ticket prices,” said Garuda Indonesia president director Ari Askhara in a statement.
“Garuda Indonesia Group believes the ticket price cut is in line with an intensive synergy among all stakeholders to maintain people’s access to air travel.”
Previously, President Joko “Jokowi” Widodo called for the lowering of airplane ticket prices after receiving complaints from the Indonesian Hotel and Restaurant Association (PHRI) about low occupancy rates in hotels, which it blamed on high airplane ticket prices.
The President also called on state-owned oil and gas holding company Pertamina to lower aviation fuel (avtur) prices, which was believed to be responsible for the high ticket prices.
Ticket prices were cut not only to boost tourism, but also to help small and medium enterprises (SMEs) and other industries that relied on air transportation, he said, adding that synergy among stakeholders was also needed to maintain the sustainability of the country’s aviation industry.
“We assure that Garuda Indonesia Group is committed to maintaining the quality of its services with these competitive ticket prices,” he added. (bbn)