Garuda eyes tariff rise

Garuda eyes tariff rise

HONG KONG (Reuter): Senior executives of Garuda Indonesia are to meet next week to discuss possible increases in air cargo rates and passenger prices, a cargo department source in Jakarta told Reuters by telephone.

Garuda raised its domestic air cargo rates by 40 percent last November but has not increased its international rates for more than two years, he added.

"We have an internal meeting next Wednesday or Thursday to discuss the situation for both passengers and cargo. I think a rate rise is a possibility. Cargo volumes are being maintained but the depreciation of the rupiah is a big problem for us," the cargo source said.

Other ex-Jakarta cargo carriers are waiting to see what Garuda decides but are expected to follow the flag carrier's lead if a rate rise is decided, he added.