The Jakarta Post
Transportation Minister Budi Karya Sumadi said on Friday that the airfare for many Garuda Indonesia flights was still too high, even after the flag carrier — along with other airlines under its operation — had slashed prices by 20 percent on Thursday.
“I checked the prices this morning; they are still too high,” Budi said as quoted by kompas.com, adding that he had called on Garuda Indonesia to revise down its prices for domestic flights.
He expects other airlines to follow suit and drop their prices as well.
“We will monitor [the situation]. If Garuda’s price is 100, Batik [Air] may charge 95 or 90 and Sriwijaya’s [tickets] can be even lower, Meanwhile, Citilink [Indonesia] will also make some corrections,” he said.
Garuda Indonesia Group – comprising Garuda Indonesia, Citilink Indonesia, Sriwijaya Air and PAN Air – announced on Thursday that it had reduced ticket prices by 20 percent as part of an initiative made by the Indonesia National Air Carrier Association (INACA).
Earlier this week, President Joko “Jokowi” Widodo urged the domestic aviation industry to lower their airfare in response to complaints made by the Indonesian Hotels and Restaurants Association (PHRI) about low hotel occupancy rates across the archipelago.
The President also called on state-owned oil and gas holding company Pertamina to lower aviation fuel (avtur) prices, which are often blamed for the high cost of flights. (bbn)