Domestic airfares raised after polls<\/p>\n
JAKARTA (JP): The Indonesian National Air Carriers Association
\n(INACA) plans to raise domestic airfares after the general
\nelection in June to adjust to increasing operational costs that
\nhave been driven up by a weakening rupiah.<\/p>\n
The association's chairman Soelarto Hadisoemarto told The
\nJakarta Post on Tuesday the planned airline tariffs hike would
\nfollow an expected rise in jet fuel prices after the government
\nremoves subsidies on the fuel this year.<\/p>\n
\"After state-owned oil and gas firm Pertamina lifts the
\nsubsidies on aviation fuel, the price will surely be higher and
\nour operational costs will increase,\" Soelarto said.<\/p>\n
\"So we will adjust our tariffs after the general election,\" he
\nadded.<\/p>\n
The government has said it would scrap subsidies on jet fuel
\nthis month.<\/p>\n
Soelarto said INACA had already gotten approvals from the
\ngovernment to increase in several phases the basic airfares to 11
\nU.S. cents per kilometer per seat from the current 7 cents.<\/p>\n
The association would submit applications to the House of
\nRepresentatives for approval soon after the election and would
\nraise the domestic fares in several phases.<\/p>\n
\"We will take into consideration the condition of our economy
\nat the time, and if it improves then buying power will strengthen
\ntoo,\" he said.<\/p>\n
\"But if it sinks even deeper, I don't think anyone will be
\nwilling to pay more for an airline ticket.\"<\/p>\n
The five currently operating local carriers last raised
\ndomestic airfares by 40 percent to Rp 753 per kilometer per seat
\nbased on the assumption of Rp 10,600 to the U.S. dollar in
\nAugust.<\/p>\n
The airlines' plan to raise airfares by a further 14.5 percent
\nin December was postponed as the rupiah gradually strengthened to
\nabout Rp 7,500 to the dollar at the time.<\/p>\n
However, fresh riots and external concerns have weakened the
\nrupiah again recently, pushing it down to about Rp 9,100 to the
\nU.S. dollar on Tuesday. (das)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/domestic-airfares-raised-after-polls-1447893297",
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