KPPU Decides 7 Airlines Are Wrong About Ticket Cartel, This Is The Response Of Garuda Indonesia Boss

JAKARTA - The Business Competition Supervisory Commission (KPPU) stated that there were seven airlines that were proven to have cartelized the scheduled commercial air transportation ticket prices for domestic economy class passengers. The seven airlines include PT Garuda Indonesia (Persero) Tbk, PT Citilink Indonesia, PT Sriwijaya Air, PT NAM Air, PT Batik Air, PT Lion Mentari, and PT Wings Abadi.

Responding to the KPPU's decision, Garuda Indonesia President Director Irfaniaputra said the Garuda Indonesia Group (Garuda and Citilink) fully respects the legal process that has been running to date.

"We certainly realize that a healthy business climate is an important foundation for the aviation industry ecosystem so that it can continue to be competitive," he said, in a written statement received by VOI, Thursday, June 25.

Currently, said Irfan, Garuda Indonesia Group ensures to strengthen its commitment in carrying out corporate business governance in the midst of the increasingly dynamic challenges of the airline industry, while maintaining the principle of compliance with applicable policies.

"Garuda Indonesia Group will also focus on achieving optimal business performance in line with efforts to implement the principles and provisions of fair business competition," he said.

For your information, in an open session held on Tuesday, June 23, the KPPU panel of judges read out the Decision on Case Number 15 / KPPU-I / 2019 concerning Alleged Violations of Article 5 and Article 11 of Law Number 5 of 1999.

Article 5 of Law Number 5 Year 1999 which the seven airlines violated reads: "(1) Business actors are prohibited from entering into agreements with business competitors to fix prices for goods and or services that must be paid by consumers or customers in the same relevant market."

The KPPU's decision is a follow-up to KPPU's research and examination of a number of national airlines, including the Garuda Indonesia Group in mid-2019.

Based on the trial, the Commission Council considered that there had been a concerted action or parallelism among the seven airlines, so that there had been an agreement between business actors (meeting of minds) in the form of an agreement to eliminate discounts or create uniform discounts, and an agreement to eliminate products offered at low prices. in the market.

This has resulted in limited supply and high prices for scheduled commercial air transport services for economy class passengers in Indonesian territory.

The Commission Council then decided that the reported parties were legally and convincingly proven to have violated Article 5, but were not proven to have violated Article 11 as regulated by Law Number 5 Year 1999.

Meanwhile, the sanctions imposed are in the form of orders to the reported parties to notify the KPPU in writing of any policies that will affect the map of business competition, the ticket prices paid by consumers and the public before the policy is adopted.