Garuda may halt tariff hike plan<\/p>\n
JAKARTA (JP): National flagship carrier Garuda Indonesia said
\nMonday it would maintain its airfares for domestic routes at the
\ncurrent level if the rupiah's value continues to strengthen
\nagainst the U.S. dollar.<\/p>\n
The airline's president, Robby Djohan, said Garuda would not
\nhave to raise the domestic flight rates in December as planned
\nearlier this year, if the rupiah continued to stay at the current
\nlevel of between Rp 7,000 and Rp 8,000 to the U.S. greenback.<\/p>\n
\"We don't need another rise in December, because at the
\ncurrent tariffs, we are not profiting much nor are we losing too
\nmuch,\" Robby told reporters after the signing of an agreement by
\nthe Sahid International Hotel Management and Consultant with the
\nhotel's new partner Saudi Arabia's Badr Trading & Contracting
\nEst.<\/p>\n
The current domestic airfares of all the five operating
\nscheduled airlines in the country have been set assuming an
\nexchange rate of Rp 10,000 per dollar, a huge increase from the
\nrate of Rp 5,000 which was used when the last round of fare
\nincreases was calculated.<\/p>\n
The Association of Indonesian Airlines (INACA), which groups
\nthe five commercial airlines, has planned to raise the fares by
\n14.5 percent on Dec. 1 to Rp 862 per kilometer per seat from Rp
\n753 per kilometer per seat set last September.<\/p>\n
The rupiah strengthened to around Rp 7,000 last week, after
\nfalling to a historic low of over Rp 17,000 earlier this year
\nfrom around Rp 2,500 in August 1997.<\/p>\n
On Monday the rupiah closed at Rp 7,400 per U.S. dollar after
\nreaching an intraday low of 8,000 in the morning.<\/p>\n
Robby said Garuda might even lower its domestic airfares if
\nthe rupiah continued to strengthen to between Rp 6,000 and Rp
\n7,000 to the U.S. dollar.<\/p>\n
\"If the (rupiah's) exchange rate strengthens again, we will
\nadjust it. We may reduce the rates, because our tariffs depend
\nmuch on our operating costs, which are mostly in U.S. dollars,\"
\nhe said.<\/p>\n
Robby stressed the importance of having a stable exchange rate
\nin order to help the airline industry with a business indicator.<\/p>\n
\"The most important thing is not to have a high or low
\nexchange rate, but for it to be more stable because it is
\nimportant to have a stable indicator,\" he said. (das)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/garuda-may-halt-tariff-hike-plan-1447893297",
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