Airlines to Cut Low-Cost Carrier Airfare

Minister of Transportation Budi Karya Sumadi and Coordinating Minister for the Economy Darmin Nasution hold a press conference at the office of Coordinating Ministry for the Economy, Jakarta, Thursday (20/6). Photo by: PR of Coordinating Ministry for the Economy.

Indonesian airlines will cut airfares for domestic LCC (Low-Cost Carrier) flights, according to Minister of Transportation Budi Karya Sumadi.

“This is a good thing, the airlines will announce (the lower airfare) within next seven days, based on the directives of the Coordinating Minister for the Economy,” the Minister said after attending the Limited Coordination Meeting on Policy Evaluation for Lowering Airfare at the office of Coordinating Ministry for the Economy, Jakarta, Thursday (20/6).

Budi praised the aviation stakeholders that have worked together to meet the public demand. In the Coordination Meeting led by the Coordinating Minister for the Economy, the Government and all relevant parties have agreed on three policies, including:

First, to meet the public demand for lower airfare, the Government and all relevant parties are finalizing the policy to impose lower airfare of domestic Low-Cost Carrier (LCC) for several flight routes. The policy will be in force next week.

Second, to maintain the sustainability of the air transport industry, all related parties such as airlines, airport operators, and jet fuel providers have committed to lowering flight operating costs.

Third, to maintain airline cost efficiency, the Government is drafting a fiscal incentive policy for: aircraft rental services, maintenance and repair services, aircraft rental services from outside the customs area, import, and delivery of aircraft and its spare parts. (Humas Kemenhub/ES)

Translated by: Ridwan Ibadurrohman
Edited by: Mia Medyana