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Government Allows Airline to Increase Prices by 15 Percent

airline prices
Government Allows Airline to Increase Prices by 15 Percent

The government is allowing airlines to increase airfare fares in line with the new regulation from the Transportation Ministry which allows airlines to charge additional fees or a surcharge of a maximum of 15 percent of the upper limit for jet aircraft. 

For propeller-type aircraft, a maximum of 25 percent of the upper limit rate can be added.

The application of the imposition of additional fees is optional for airlines and not mandatory. The Transportation Ministry will also evaluate the application of additional fees at least every three months.

The rules for additional fees are contained in Ministerial Decree number 142 of 2022 concerning the amount of surcharges due to fluctuations in fuel.

“As a regulator, we need to establish this policy so that airlines have guidelines in implementing passenger fares,” said Director General of Civil Aviation Nur Isnin Istiartono in his statement, on Sunday 7th August 2022.

However, he appealed to all airlines serving domestic scheduled flight routes to be able to apply passenger fares that are more affordable for users of flight services.

As we know, the people’s purchasing power has not recovered due to the COVID-19 pandemic, but the public’s need for air transportation must still be considered,” he said.

According to him, the government is trying to accommodate the interests of all parties in determining the amount of additional costs for aeroplane fares. The policies adopted are expected to provide consumer protection and maintain healthy business continuity.

“Together, let’s contribute and collaborate in the restoration of air transportation. In particular, airlines must comply with the applicable tariff provisions and maintain the quality of services provided in accordance with their respective service groups,” he concluded.

Also Read AirAsia Reopens Surabaya-Lombok Route Four Times a Week

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