Airlines yet to decide on new fares
Airlines yet to decide on new fares
Tony Hotland, Jakarta
Major Indonesian airlines have yet to decide on whether to
charge passengers with new levy amid surging oil prices that are
affecting the price of jet fuel.
Garuda Indonesia spokesman Pujobroto said the airline was
currently evaluating the impact of the surging oil prices, as
fuel was one of its main operating costs.
"We may increase fares, but not for the time being," Pujobroto
told The Jakarta Post over the weekend.
Garuda bought jet fuel from state oil and gas company PT
Pertamina and from foreign oil companies in countries that were
Garuda destinations, he said.
"The jet fuel prices in several foreign countries have risen,
but I don't know the exact details. However, as far as I know,
Pertamina has not increased the jet fuel price," he said.
Merpati Nusantara general manager for corporate affairs Imam
Turidy said management of the state airline also had no plans to
increase fares yet.
"For now, we can assure (consumers) we're not thinking of
rising our ticket prices since the impact (of surging oil prices)
is still not significant. But we'll review the prices should the
conditions get worse," Imam said.
Merpati would probably avoid passing the extra costs onto the
consumer as long as the company's profit continued to rise.
"We're trying to improve our occupancy rate and we will try to
subsidize the slack routes. If we really have to raise the fares,
I can guarantee that it will be after a deep evaluation," he
said.
Australian carrier Qantas, Air New Zealand, British Airways,
and Malaysian Airlines have announced their plans to introduce
surcharges on ticket sales -- a result of the highest global
price for oil in more than a dozen years.
Pertamina spokesman Mohammad Harun said the company had yet to
decide on whether to increase the jet fuel price and was still
examining the situation.
"The two main factors that play a role in determining fuel
prices are the oil price and the currency rate. Right now, the
oil price is really high and our currency rate is weakening. We
may increase the jet fuel price if this condition continues, but
we must wait at least until the end of this month," he said.
Pertamina reviews fuel prices monthly and introduces new rates
at the beginning of each month.
Oil prices have leapt above US$40 a barrel on concerns the
Organization of the Petroleum Exporting Countries (OPEC) is not
pumping enough oil to meet accelerating world demand.
The Indonesian rupiah has also weakened in the past several
weeks against the U.S. dollar in line with losses in other
regional currencies. The U.S. Federal Reserve's interest rate-
hike plan and China's policy to slow the pace of its overheating
economy are the underlying factors in the decline.