Airlines yet to decide on new fares<\/p>\n
Tony Hotland, Jakarta<\/p>\n
Major Indonesian airlines have yet to decide on whether to
\ncharge passengers with new levy amid surging oil prices that are
\naffecting the price of jet fuel.<\/p>\n
Garuda Indonesia spokesman Pujobroto said the airline was
\ncurrently evaluating the impact of the surging oil prices, as
\nfuel was one of its main operating costs.<\/p>\n
\"We may increase fares, but not for the time being,\" Pujobroto
\ntold The Jakarta Post over the weekend.<\/p>\n
Garuda bought jet fuel from state oil and gas company PT
\nPertamina and from foreign oil companies in countries that were
\nGaruda destinations, he said.<\/p>\n
\"The jet fuel prices in several foreign countries have risen,
\nbut I don't know the exact details. However, as far as I know,
\nPertamina has not increased the jet fuel price,\" he said.<\/p>\n
Merpati Nusantara general manager for corporate affairs Imam
\nTuridy said management of the state airline also had no plans to
\nincrease fares yet.<\/p>\n
\"For now, we can assure (consumers) we're not thinking of
\nrising our ticket prices since the impact (of surging oil prices)
\nis still not significant. But we'll review the prices should the
\nconditions get worse,\" Imam said.<\/p>\n
Merpati would probably avoid passing the extra costs onto the
\nconsumer as long as the company's profit continued to rise.<\/p>\n
\"We're trying to improve our occupancy rate and we will try to
\nsubsidize the slack routes. If we really have to raise the fares,
\nI can guarantee that it will be after a deep evaluation,\" he
\nsaid.<\/p>\n
Australian carrier Qantas, Air New Zealand, British Airways,
\nand Malaysian Airlines have announced their plans to introduce
\nsurcharges on ticket sales -- a result of the highest global
\nprice for oil in more than a dozen years.<\/p>\n
Pertamina spokesman Mohammad Harun said the company had yet to
\ndecide on whether to increase the jet fuel price and was still
\nexamining the situation.<\/p>\n
\"The two main factors that play a role in determining fuel
\nprices are the oil price and the currency rate. Right now, the
\noil price is really high and our currency rate is weakening. We
\nmay increase the jet fuel price if this condition continues, but
\nwe must wait at least until the end of this month,\" he said.<\/p>\n
Pertamina reviews fuel prices monthly and introduces new rates
\nat the beginning of each month.<\/p>\n
Oil prices have leapt above US$40 a barrel on concerns the
\nOrganization of the Petroleum Exporting Countries (OPEC) is not
\npumping enough oil to meet accelerating world demand.<\/p>\n
The Indonesian rupiah has also weakened in the past several
\nweeks against the U.S. dollar in line with losses in other
\nregional currencies. The U.S. Federal Reserve's interest rate-
\nhike plan and China's policy to slow the pace of its overheating
\neconomy are the underlying factors in the decline.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/airlines-yet-to-decide-on-new-fares-1447893297",
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