Get Ready! Airlines That Violate Upper Limit Tariffs Will Be Sanctioned

Plane illustration (Photo: Doc. Antara)

JAKARTA - Airlines violating the upper limit (TBA) will be given administrative sanctions from the Ministry of Transportation (Kemenhub).

Director General (Dirjen) of Civil Aviation of the Ministry of Transportation Maria Kristi Endah Murni said that during the supervision, the Directorate General (Ditjen) of Air Transportation found variations in violations of air transportation rates on several routes served by several airlines.

"In the form of a violation of the determination of TBA/TBB (low limit rate) or the determination of FS (fuel surcharge) which exceeds the stipulated provisions," Kristi said as quoted by Antara.

Regarding the violations that occurred, he said the Directorate General of Civil Aviation had consistently imposed sanctions on airlines that violated the Regulation of the Minister of Transportation Number PM 27 of 2021 concerning Procedures for Supervision and Imposition of Administrative Sanctions on Violations of Legislation in the Aviation Sector.

"The TBA and FS violations are dominant on short-distance routes within the July-December 2022 period. We have given administrative sanctions to the airline concerned in the form of a warning letter that is valid for 14 days," he said.

Before the commemoration period expires, airlines must repair the rates that are violated and the Directorate General of Civil Aviation will ensure that there are no similar or repeated violations on other routes.

If the warning letter is not heeded and there has been no improvement, it will be subject to further administrative sanctions in the form of freezing, revocation and/or administrative fines.

"Some of the airlines have made improvements, as the development of aircraft operating costs (BOP) is better, which is dominated by the cost burden of avtur and rupiah exchange rates on the dollar," said Kristi.

The Directorate General of Civil Aviation stated that it was necessary to conduct a joint study regarding the implementation of TBA and TBB as well as FS as a follow-up to monitoring the application of domestic economy class air transportation passenger ticket fares.

The Directorate General of Civil Aviation together with the Indonesia National Air Carriers Association (INACA) and airlines collaborated to conduct a joint study in improving the formulation of the calculation of aircraft ticket rates.

This is done to get more economic value in accordance with taking into account the condition of the aviation fuel price and the operating costs of the latest aircraft while still paying attention to the principles of consumer protection.

Furthermore, Kristi revealed that based on a joint study conducted regarding the assessment of the airline and INACA on the amount of TBA on these routes, the economic value was no longer in accordance with the BOP burden.

Officially, INACA and several airlines have written to the Directorate General of Civil Aviation to reconsider a review of the tariff rates on several short routes.

"We will continue to be active and consistent in coordinating and collaborating with other stakeholders to provide support for the creation of national and global connectivity with the most efficient cost burdens in order to obtain rates that are increasingly affordable by the public," he said.

As the civil aviation regulator, the Directorate General of Civil Aviation has the task of supervising the implementation of ticket rates in accordance with the Regulation of the Minister of Transportation Number PM 20 of 2019 concerning Procedures and Formulation for Calculating Limit Rates for Passengers of Domestic Scheduled Commercial Air Transport Economic Class Services who always balance consumer interests and healthy business continuity for airlines.

In accordance with these provisions, each airline must determine whether the flight ticket rate does not exceed the TBA or not below the TBB along with other tariff provisions such as FS in accordance with the provisions of the legislation to maintain the momentum of national flight recovery.