The Minister Of Transportation Wants To Lower The Upper Tariff On Airplane Tickets In The Region, This Is INACA's Response

JAKARTA - The Indonesia National Air Carrier Association (INACA) has no objection to the Ministry of Transportation's plan to lower aircraft ticket rates (TBA) for a number of regions in Indonesia.

INACA Chairman Denon Prawiraatmadja said this plan must be accompanied by clarity of the rules. He also requested that this plan not hinder airline company performance activities.

From our side, what is certain is that we hope that any rules related to this upper limit rate will not hinder the performance activities of airline companies. This means that a healthy competition between our member airlines in using the upper limit rate requires clarity of the rules," he said when met at the Park Hyatt Hotel, Jakarta, Thursday, November 2.

If there are clear rules regarding this plan, he continued, his party will not mind it. However, with a note, later this rule can produce fair company.

"But those rules are adjusted, please. As long as it can produce fair competition for us," he said.

Previously, the Minister of Transportation (Menhub) Budi Karya Sumadi planned to revise the TBA for aircraft tickets to the regions. But not all regions, but only areas with poor purchasing power.

"We still refer to or pay attention to this TBA, but maybe the TBA for certain areas that we do, not all of them," he said at the CEO Talks INACA event at the Park Hyatt Hotel, Jakarta, Thursday, November 2.

Budi said the plan to reduce the regional TBA is considering people's purchasing power to buy aircraft tickets that are still low. Especially, he said, in eastern Indonesia.

"People are also limited in purchasing power. It is proven that many of the eastern parts of Indonesia are unable to board planes, because the price is not cheap," he said.

However, Budi said that the decrease in the TBA for aircraft tickets must be studied comprehensively from various sides. The reason is, the Indonesian aviation industry is still facing challenges. Such as weakening the rupiah exchange rate, increasing the price of aviation fuel to scarcity of aircraft parts.

"So we can't see one side, we have to look at it 360 degrees," he said.