Airline alliance warned to avoid unfair practices<\/p>\n
JAKARTA (JP): An antimonopoly watchdog has warned a planned
\nnew airline alliance to abide by the law and not overstep the
\nboundaries of unfair business practices.<\/p>\n
Chairman of the Business Competition Supervisory Commission
\n(KPPU) M. Iqbal said on Friday that as long as the alliance was
\nformed to benefit customers and not to prevent other airlines
\nfrom having a share of the market then it would not have any
\ntrouble from the commission.<\/p>\n
\"But if in implementation there is suspicion of unfair
\nbusiness practices, then the KPPU will investigate the matter,\"
\nhe told The Jakarta Post.<\/p>\n
Four domestic airlines -- Mandala Airlines, Pelita Air
\nService, Bouraq Airlines and Dirgantara Air Service -- are
\nplanning to form an alliance early next month to cope with
\nmounting competition from other airlines.<\/p>\n
Head of Mandala's development division Kus Winarko said
\nearlier that the alliance would enable the airlines to expand
\ntheir businesses and provide new destinations, without the need
\nto add more planes.<\/p>\n
He said the four airlines would complement each others' flight
\nroutes so that passengers could have more connecting flights to
\nmore destinations.<\/p>\n
An alliance between airlines means that if a passenger needs
\nconnecting flights to another destination he does not need
\nseveral reservations, but could do so with one airline, which
\nwould reserve a seat for him on another airline in its alliance.<\/p>\n
Iqbal said that this was vulnerable to practices of unfair
\nbusiness in which the allied airlines could prevent passengers
\nfrom reserving flights on other airlines.<\/p>\n
\"As long as the passengers are free to make their own choices
\nthen there's no problem,\" he said.<\/p>\n
Iqbal said that non-allied airlines should not see this as a
\nthreat to their business but to treat it as an incentive to
\nfurther improve their services.<\/p>\n
He said that at the moment KPPU saw no need to closely monitor
\nthe activities of the alliance as its vulnerability to unfair
\nbusiness practices had not yet been proven.<\/p>\n
\"But if later on there are reports of unfair business
\npractices, then we will investigate,\" Iqbal said.<\/p>\n
According to the 1999 antimonopoly law, businesses are not
\nallowed to enter into agreements that would control the
\nproduction or marketing of goods or services which could prompt a
\nmonopoly or unfair business practices.<\/p>\n
The law also stipulates that an alliance that controls more
\nthan 75 percent of the market of a certain product or service was
\nliable for suspicion.(tnt)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/airline-alliance-warned-to-avoid-unfair-practices-1447893297",
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