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Darmin takes wait-and-see approach to Monday's LCC airfare cut
The office of the top economy minister will be monitoring low-cost carrier airlines on Monday, when they are due to cut their airfares.
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Coordinating Economic Minister Darmin Nasution (JP/File)
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week since a coordinating meeting was held between the government, low-cost carriers (LCCs) and industry stakeholders to address high airfares, Coordinating Economic Minister Darmin Nastution has said the government is waiting for the airlines to lower their prices as promised.
The government also told the airlines to provide the schedules of sold-out flights.
“If, by Monday, there is no airfare cut, we will [tell the airlines] to fulfill their promise,” the minister said in Jakarta on Friday as quoted by tribunnews.com, adding that the government was still waiting for the flight schedules as well.
The government has been trying to push down airfares in the past recent months by issuing a number of regulations, lowering aviation fuel prices and mulling the introduction of an open skies policy. Most recently, it promised to offer fiscal incentives for airlines.
The government blames high airfares for the gloomy tourism industry, marked by low hotel occupancy rates at tourist destinations.
Darmin said that his office would monitor the airlines in fulfilling their commitment to the price cut, so the people could benefit from affordable airplane tickets. “They [the airlines] will announce [the new airfares]. We just have to monitor [them] to see whether they will implement the agreement,” he said.
During the coordination meeting on June 21, the government and stakeholders in the aviation industry agreed to several measures, including lowering LCC airfares starting July 1 and lowering operational costs for airlines.
The government also agreed to offer tax cuts for leasing and maintaining aircraft, as well as for importing aircraft components. (bbn)
