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Monday, 13 April 2020 09:59

Indonesian Government to Raise Flight Ticket Prices during Social Restrictions

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The Indonesian Transportation Ministry planned to increase the ticket price ceiling (TBA) and price floor (TBB) for air transports following the enforcement of the large-scale social restrictions or PSBBin several regions.

The ministry’s Air Transports Director-General Novie Riyanto said the adjustment of the airfare is based on the ministerial regulation No. 18/2020 on the transportation control to prevent the spread of the 2019 coronavirus disease or COVID-19, which was issued on April 9.

Based on Article 14, the number of passengers during the PSBB is limited by up to 50 percent of the capacity. Thus, the tariff of the scheduled commercial flights will likely increase by two times from the current prices. 

“We have calculated that it seems a passenger pays for two tickets. So the price hike is almost two folds,” Novie explained in Jakarta on Sunday, April 12.

He set a target that the minister will agree on the price revision in the near future so that airlines could immediately implement new tariffs. This policy was expected as a stimulus for airlines that were forced to limit passenger numbers. He expected the adjusted tariff will be valid three days after the request is granted.

The Indonesian Consumers Foundation (YLKI) secretary Agus Suyatno considered the government’s policy to increase the ticket price ceiling and price floor was in point to reduce the spread of the Covid-19.

“Especially ahead of the Eid al-Fitr holidays, when the population movement for the mass exodus (mudik) likely increases,” Agus added. (tempo.co)

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