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Domestic airline to use endorsable ticket system

| Source: JP

Domestic airline to use endorsable ticket system

JAKARTA (JP): After two years preparation, six domestic
airlines will introduce today endorsable tickets allowing
passengers to use tickets from one airline on other carriers.

The Indonesian National Air Carriers Association's (INACA)
chairman, Soelarto Hadisumarto, said yesterday the endorsable
ticket system aimed to end the price war among the six scheduled
domestic airlines. They are Garuda Indonesia, Merpati Nusantara
Airlines, Bouraq Indonesia, Mandala Airlines, Sempati Air and
Dirgantara Air Service.

"The endorsable ticket system will be fully operational later
this month or early June. We using this one-month period as a
soft operation," he said after reporting to the minister of
transportation, Haryanto Dhanutirto.

Soelarto said INACA would arrange ticket distribution to
several ticket sales offices and travel agencies over the next
month.

Domestic passengers who hold endorsable tickets can change
their booking to another airline they cannot use their original
booking.

Changes will be allowed if there is a delay of at least two
hours or a canceled flight.

Soelarto said other reasons to allow changes were being
discussed.

He said Bank Central Asia had been appointed as the clearing
bank to supervise payments for endorsable tickets.

Haryanto said the scheme, technically supported by the
International Air Transport Association, would be effective in
ending the price war.

"I am quite happy this system is now ready after two years of
preparation," he said.

"Any discounts from travel agents or the airlines will no
longer exist. Sometimes I was confused because some airlines
cried out for government-mandated higher fares but several others
were willing to offer fare discounts of up to 40 percent," he
said.

He said government-set airfares would not change.

Under Decree No. 20/1996, dated April 3, 1996, and signed by
Haryanto, airfares were increased for both jet and non-jet
services.

The increases ranged between US$0.11 a passenger a kilometer
for a distance over 1,500 kilometers for jets and Rp $0.108 a
passenger a kilometer for a distances over 150 kilometers for
other planes.

Airfare hikes will be calculated automatically every six
months in line with the rupiah's fluctuation against the U.S.
dollar.

In 1995 the six airlines signed an agreement limiting
discounts for travel agents to seven percent, far less than
previous discounts of more than 40 percent. (icn)

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