No Need To Remove TBA, Garuda Indonesia Boss Asks The Ministry Of Transportation To Increase Tariff Limits

Illustration of Garuda Indonesia (photo: dock. Antara)

JAKARTA - President Director of Garuda Indonesia Irfan Setiaputra asked the government to set a higher upper limit limit (TBA) limit limit for aircraft. Following, there is a proposal from the airline association asking that TBA be removed.

Irfan said, the TBA rules for aircraft themselves are regulated in Law (UU) Number 1 of 2009 concerning Aviation. So, when the TBA is abolished, there must be a revision of the law.

As a solution, Irfan also suggested that the TBA limit could be increased. That way, according to Irfan, the tariff determination room will be bigger.

"Just give a high roof (top boundary), not remove it, just give a high roof, right. If for example now the TBA is Rp. 1 million, just give the roof Rp. 5 million. We also can't sell (the tickets above the TBA) for Rp. 6 million, right," he told reporters when met at the Parliament Complex, Jakarta, written Thursday, November 16.

According to Irfan, with a higher TBA determination, it will open up the possibility of a market mechanism that occurs in the scope of aircraft ticket prices. Later, the airline will also provide services according to the price paid.

"Give it to the market mechanism, if we increase it, we must return it to better service, timeliness, and all kinds of things," he explained.

For example, said Irfan, the current price of TBA is Rp. 1 million, released, airlines are unlikely to sell tickets at a price of Rp. 5 million. According to Irfan, Garuda Indonesia is not a company that will charge more than TBA.

"It's not our type. What's important is that we can promise the best service we can make sure the flight is safe, we make a profit," he said.

"Please, passengers choose their own. You said 'Garuda is expensive, I don't want to', please,' he said.