Gov’t Calls on All Parties to Comply with Lower Airfare Policy

Government reminded all parties to provide cheap flights with 50% discounted rate from Low Cost Carrier (LCC) price ceiling on 30% of the seats starting from Thursday (11/7).

The cheap flights have been agreed upon by the Government and all related entities, namely Garuda Indonesia Airlines Group, Lion Air Group, state airport operators PT Angkasa Pura I and PT Angkasa Pura II, state oil and gas company Pertamina, Public Company of Service Provider Agency of Indonesia Flight Navigation (Perum LPPNPI)/Air Nav Indonesia.

“This (policy) shows commitment and support of the Government towards related industry players to provide cheap flight to passengers,” Head of Legal Affairs and Public Relations Bureau of the Coordinating Ministry for the Economy I Ktut Hadi Priatna stated on a press conference, Thursday (11/7).

The cheap flights, Ktut stated, are scheduled on certain days and time (flight departures on Tuesday, Thursday, and Saturday at 10.00 a.m – 2.00 p.m) for no-frills flights or LCC domestic flights using jet aircraft. Some of the airlines providing the service, he added, are Citilink Airlines (62 flights or 3,348 seats/day) and Lion Air (146 flights or 8,278 seats/day).

Ktut also explained that the 50% discounted rate can be provided through total loss sharing with all related entities, including Garuda Indonesia Airlines Group, Lion Air Group, Ministry of Transportation, PT Angkasa Pura I and PT Angkasa Pura II, Pertamina, and Air Nav Indonesia. “The sharing of a total loss due to decreasing prices will be divided proportionally to all related parties,” he said. (EN/Coordinating Ministry for the Economy PR/ES)

Translated by : Fairuzzamani Inayatillah
Edited by : Ridwan Ibadurrohman. Mia M. Bonaedy