APSN Banner

Govt allows 15% hike in airfare in response to fuel hike

Tempo - August 8, 2022

Francisca Christy Rosana, Jakarta – The Transportation Ministry has given a red carpet for jet-type airlines to increase airfare tariffs to a maximum of 15 percent of the upper tariff limit. This regulation is contained in the Transportation Minister's Decree No. 142 of 2022 which takes effect on August 4, 2022.

"As a regulator, we need to establish this policy so that airlines have guidelines in applying passenger fares," said the ministry's acting director general Nur Isnin Istiartono in his statement as quoted on Sunday, August 7, 2022.

The rate increase is an additional cost in response to the soaring price of aircraft fuel or fuel surcharge. In addition to jet-type airlines, the Transportation Ministry allows propeller airlines to increase their fuel surcharge by 25 percent.

The percentage was increased compared to the previous provisions, which were 10 percent for jet aircraft and 25 percent for propeller aircraft.

Isnin further encouraged all airlines serving domestic scheduled flight routes to apply more affordable ticket prices in line with rising fuel surcharge in efforts to maintain inter-regional connectivity in the archipelago and the continuity of aircraft services.

"As we all know, the people's purchasing power has not yet fully recovered from the COVID-19 pandemic," said Isnin.

Source: https://en.tempo.co/read/1620325/govt-allows-15-hike-in-airfare-in-response-to-fuel-hik