If Airlines Increase Airline Ticket Prices, Minister Of Home Affairs: They Are Profitable But Inflation Will Increase

Minister of Home Affairs Tito Karnavian (Photo: Doc. VOI)

JAKARTA - Minister of Home Affairs (Mendagri) Tito Karnavian warned airlines not to set the highest price during the 2024 Eid homecoming period. The reason is, the high ticket price when demand increases will increase inflation in the transportation sector.

"Don't let demand be high, then benchmarks (at the highest price), while that's it, they are profitable but later the impact (cost) of transportation will increase, inflation will increase, and food prices will also increase," he said on the sidelines of the Food Supply and Price Security Coordination Meeting Ahead of Fasting and Eid Al-Fitr, at Kempinski Grand Ballroom, Jakarta, written Tuesday, March 5.

Tito said that the price of airplane tickets is often the main contributor to inflation during the Lebaran homecoming period and Christmas and New Year. Therefore, he wants airlines to be able to determine ticket prices not at the upper limit (TBA).

"This is the most important thing, always before the holiday and New Year's Christmas, the number one contributor is air transportation rates," said Tito.

Furthermore, Tito also asked the Minister of Transportation Budi Karya Sumadi to gather airlines to discuss the price of aircraft tickets during the Lebaran 2024 homecoming period.

"We really ask that if you can collect friends from the airlines, so you don't take the highest benchmark price, but it's a natural thing that can be (affordable), because the demand is very high," he said.

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Responding to this request, the Minister of Transportation's Expert Staff for Maritime Transportation and Maritime Affairs Andre Mulyana admitted that he would immediately report it to the Minister of Transportation Budi Karya.

"God willing, Mr. Minister, I will convey it directly, I just texted it directly to the Minister of Transportation. Later we will follow up this week," he said.

Andre also said that the Ministry of Transportation actually has a starting force to control air transport rates. One of them is forming a special team.

"Of course I have recorded about controlling air transport rates, even at the Ministry of Transportation after being formed yesterday last year, strategic delivery of units," he said.

"Indeed, one of the task force is in the process of analyzing and how the action plan controls air transportation rates, especially during the Lebaran and Nataru transportation periods," he continued.