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Jakarta Post

New policy will do little to lower airfare

  • Riza Roidila Mufti

    The Jakarta Post

Jakarta   /   Wed, May 15 2019   /  02:38 am

The government’s decision to reduce the airfare price ceiling by between 12 to 16 percent beginning May 15 will be insignificant in lowering airfares, as most airfares are currently below the new ceiling price, analysts have said.The decision will impact domestic economy class airlines, both low-cost carriers (LCC) and full-service carriers.Tulus Abadi, the Indonesian Consumers Foundation (YLKI) chairman, said in Jakarta on Tuesday that the cut in the airfare ceiling price would have little effect, as most airfares were already below the new ceiling.According to Tulus, the government should also cut the sales tax on airfares, so that airlines could reduce their high operating costs, which had forced them to increase their airfares.Meanwhile, aviation observer Gerry Soejatman said the government’s decision to lower the price ceiling in the high season ahead of the Idul Fitri holiday w...