Domestic airfares may be hiked due to weak rupiah<\/p>\n
JAKARTA (JP): Domestic economy airfares may be increased
\nbecause of the depreciation of the Indonesian rupiah against the
\nU.S. dollar.<\/p>\n
Minister of Transportation Haryanto Dhanutirto said Saturday
\nthat the Indonesian National Air Carriers Association (INACA)
\ncould raise airfares to cover increased operating costs due to
\nthe weakening of the rupiah.<\/p>\n
\"The government has decided that airfares could be adjusted by
\nINACA in line with the dollar's exchange rate against the rupiah.
\nThat decision has been endorsed by the House of Representatives,\"
\nHaryanto was quoted by Antara as saying in Bandung, West Java.<\/p>\n
INACA chairman Soelarto Hadisoemarto said earlier last week
\nthat the association would increase domestic economy airfares to
\ncompensate for the higher operating costs.<\/p>\n
\"We will raise domestic airfares..., especially economy class
\nfares,\" Soelarto said after a seminar last Monday. But he did
\nnot say how much the increase would be.<\/p>\n
A decree signed by the transportation minister in April last
\nyear allows for domestic airfares to be adjusted automatically
\nevery six months in line with fluctuations of the dollar against
\nthe rupiah.<\/p>\n
Haryanto said it was fair to automatically adjust airfares
\nbecause domestic airlines bought aircraft and parts in U.S.
\ndollars, while their revenue was mostly derived from rupiah.<\/p>\n
With automatic adjustment domestic airlines could keep adding
\nto and maintaining their fleets, he said.<\/p>\n
\"I don't want to hear an excuse that an airline could not
\nmaintain its aircraft properly because of low airfares,\" the
\nminister said.<\/p>\n
He contended that current airfares -- about 11 U.S. cents per
\nseat per kilometer -- were actually competitive enough for
\ndomestic airlines to offset their operating costs.<\/p>\n
The last fare increase was recorded in October, 1997, when the
\ngovernment approved INACA's proposal to increase domestic economy
\nairfares by up to 4 percent.<\/p>\n
Domestic airfares are still based on the levels set last
\nOctober when the rupiah was Rp 2,372 against the U.S. dollar. The
\nrupiah has depreciated to 2,590 today.<\/p>\n
Under the October decree, jet airfares are Rp 285 (12 US
\ncents) per passenger per kilometer for distances less than 600
\nkilometers (up 3.63 percent), Rp 278 for distances between 601
\nkilometers and 750 kilometers (up 3.34 percent), Rp 270 distances
\nbetween 751 and 900 kilometers (up 3.05 percent), Rp 263 for
\nbetween 901 and 1,050 kilometers (up 2.73 percent) and Rp 260 for
\nover 1,050 kilometers (up 4 percent).<\/p>\n
Non-jet airfares are Rp 398 (US$0.168) per passenger per
\nkilometer for less than 150 kilometers (up 3.1 percent), Rp 389
\nfor between 151 kilometers and 225 kilometers (up 3.18 percent),
\nRp 380 for between 226 and 300 kilometers (up 3.26 percent), Rp
\n370 for between 301 and 375 kilometers (up 2.77 percent) and Rp
\n356 for more than 375 kilometers (up 1.71 percent). (rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/domestic-airfares-may-be-hiked-due-to-weak-rupiah-1447893297",
"image": ""
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