Asita and Inaca to sign domestic airfare cut deal

Asita and Inaca to sign domestic airfare cut deal

JAKARTA (JP): The Association of Indonesian Tour and Travel
Agencies (Asita) and the Indonesian Air Carriers Association
(Inaca) will sign an agreement on implementing rules of allowable
domestic airfare discounts.

Asita's chairman, Sri Mulyono Herlambang, told The Jakarta
Post at his office here yesterday that the agreement, which will
be signed early next month, will focus on commissions and
discounts provided for the sale of tickets by agents of domestic
airlines.

"The two associations will encourage each other to fight
against both airfare and ticket discounting wars," he said.

He said the planned agreement will authorize only Asita
members to sell tickets of the six domestic scheduled air
carriers.

The six air carriers grouped in Inaca are Garuda Indonesia,
Merpati Nusantara Airlines, Mandala Airlines, Sempati Air, Bouraq
Airlines and Dirgantara Air.

Members of Asita have signed an agreement, effective next
March, which limits discounts for international tickets. The
agreement, called "Plan Save 5," aims to end discounting wars
among tour and travel agencies. It allows no greater than seven
percent discounts on tickets for international flights, compared
to discounts of up to 40 percent in the past.

According to Herlambang, the planned agreement, which will be
signed by him and Inaca's chairman Soelarto, will also include
the maximum commissions given by the domestic airlines. (icn)