INACA punishes airfare discounters<\/p>\n
JAKARTA (JP): The Indonesian National Air Carriers Association
\n(INACA) has fined six domestic airlines Rp 10 million each for
\nviolating an agreement on allowable airfare discount levels
\nsigned in May.<\/p>\n
INACA's chairman, Soelarto Hadisoemarto, said yesterday that
\nthe penalty was imposed on the airlines as they were found
\noffering excessive discounts to travel agencies and passengers.<\/p>\n
Under an INACA agreement signed on May 20, discounts for
\ntravel agents are limited to a maximum of seven percent, far less
\nthan previous discounts reaching more than 40 percent. The
\nagreement, signed by Garuda Indonesia, Merpati Nusantara, Bouraq
\nIndonesia, Mandala Airlines, Dirgantara Air Service and Sempati
\nAir, was effective as of July 1, while the fines were effective
\nas of Nov. 1.<\/p>\n
The agreement also allows airlines to offer discounts of up to
\n15 percent to members of professional organizations attending
\nspecial conferences, 25 percent to students, 35 percent to
\nelderly people and 45 percent to veterans.<\/p>\n
Return tickets may obtain a discount of up to five percent and
\ntickets for tour packages 15 percent, while foreign tourists who
\nuse Indonesian airlines for their domestic flights and employees
\nof travel agents and airlines can enjoy discounts of up to 50
\npercent.<\/p>\n
The agreement requires airlines pay the association a fine of
\nup to Rp 10 million (US$4,559) for each violation against the
\nagreement, even though no agency has so far been assigned to
\ncontrol the fine collections.<\/p>\n
"Actually INACA has found each airline guilty of more than one
\nviolation, but as `shock therapy' but for the beginning the
\nassociation just fined the six airlines for one violation. The
\nairlines can accept this," Soelarto said as quoted by Antara news
\nagency.<\/p>\n
He also said INACA, which groups 21 air carriers, will be
\nstricter in imposing sanctions in the future.<\/p>\n
According Soelarto, the association will hold a meeting to
\ndiscuss endorsable tickets, which will help put a stop to unfair
\ncompetition through airfare discounting. Endorsable tickets will
\nallow passengers of an airline to fly another carrier which has
\nthe same route. (icn)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/inaca-punishes-airfare-discounters-1447893297",
"image": ""
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