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)