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Cost efficiency in air travel not only matter for airlines
Efficiency measures are needed to further cut airfares, which would involve actions from several ministries and related stakeholders including state airport operators, air navigation firms and Pertamina.
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A Garuda Indonesia aircraft is seen at Soekarno-Hatta International Airport in Tangerang, Banten, on Jan.7, 2018 (Courtesy of/Garuda Indonesia)
Efficiency measures are needed to further cut airfares, which would involve actions from several ministries and related stakeholders including state airport operators, air navigation firms and Pertamina.
After the price of jet fuel (avtur) is lowered, the cost efficiency in airport services and taxes which burden the airlines operational cost is targeted to be slashed.
State airport operator Angkasa Pura I president director Faik Fahmi said the company was ready to adjust and lower the service fee, but was waiting for airlines to announce their low-cost carrier (LCC) services.
"We will adjust [our tariffs] on routes where airlines lower the price," he said.
Angkasa Pura I has previously offered incentives for airlines that landed in Yogyakarta International Airport in Kulon Progo, Yogyakarta by giving a free landing fee in the first three months. After three months, the airlines could still enjoy a 50 percent discount on the landing fee.
