Flight tariff war<\/p>\n
A flight tariff war can be seen on several domestic flight
\nroutes today, especially the Jakarta to Surabaya journey.
\nAirlines serving that route, including Garuda Indonesia,
\nIndonesia Airlines and Star Airlines, have implemented tariff
\nstrategies to attract passengers.<\/p>\n
Indonesia Airlines has kept its airfare at below Rp 400,000
\nper seat and offered a special package. The company provides an
\nextra ticket for every two tickets purchased. Star Airlines has
\nlowered its airfare to Rp 484,000 per seat and Garuda Indonesia
\nhas reduced its fare to Rp 499,000 per seat, below the normal Rp
\n670,000 price.<\/p>\n
The low tariff strategy is perhaps very attractive because in
\nthe current gloomy economic conditions, tariffs feature in
\nconsumers' considerations in choosing transport services.
\nTherefore, we believe that the tariff war will expand to all
\nother flight routes.<\/p>\n
It is very difficult to change the conservative taste of
\nconsumers, who favor lower fares. So an increase in the flight
\ntariff can have a boomerang effect. Consumers will choose
\nalternative services that are competitive. In view of that
\nphenomenon, the tariff war can have an adverse impact on the
\nsurvival of air transport companies.<\/p>\n
-- Neraca, Jakarta<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/flight-tariff-war-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }