Wednesday, 17 Safar 1441 / 16 October 2019

Wednesday, 17 Safar 1441 / 16 October 2019

Airlines to cut the upper tariff limit by 15 percent

Kamis 09 May 2019 06:37 WIB

Red: Ani Nursalikah

Officers check passenger flight tickets at the Low Cost Carrier Terminal (LCCT) or special low-cost airline terminal after the inauguration of operations at Terminal 2 F Soekarno Hatta Airport, Tangerang, Banten.

Officers check passenger flight tickets at the Low Cost Carrier Terminal (LCCT) or special low-cost airline terminal after the inauguration of operations at Terminal 2 F Soekarno Hatta Airport, Tangerang, Banten.

Foto: Antara/Muhammad Iqbal
The decline in the upper tariff limit should not disrupt the performance of airline.

REPUBLIKA.CO.ID, JAKARTA -- At an afternoon tea event with journalists in Jakarta on Wednesday, Coordinating Minister for Maritime Affairs Luhut Binsar Pandjaitan said airline companies are expected to cut their upper tariff limit by 15 percent. All parties, including airline companies, have agreed to the plan, he said.

"It will decline by 15 percent. Garuda has said okay. In fact, Rini (state enterprises minister) has also said it," he said.

The decline in the upper tariff limit should not disrupt the performance of airline companies, he said, adding that it will be evaluated. Referring to public complaints about the high prices of air tickets, he asked them to remain calm and await a new decision on the upper tariff limit.

He said the government has made every effort to reduce the prices of air tickets by opening opportunities for the private sector to engage in the aviation turbine fuel (avtur) business, among other measures. As such, state oil and gas firm Pertamina will compete with the private sector to provide avtur fuel and thereafter its price will be competitive.

"We are different from Singapore where (the avtur price) is almost 25 percent. We do not want the difference to be too much. Singapore itself imports it," he said.

sumber : Antara
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