Garuda unveils new pricing scheme

JAKARTA: National flag carrier PT Garuda Indonesia has unveiled a new pricing policy to lure more customers and increase its earnings amid tighter competition in the country's airline industry.

Under the new pricing policy, which is effective as of May 1, the airline will raise the price of tickets when demand is high, but cut the price when demand is low, vice president for revenue management Agus Priyanto told reporters Saturday.

Ticket prices will also be cut by 20 percent for passengers who make a booking two months earlier.

Passengers who travel along with family members will also be given a discount of between 20 percent and 25 percent.

The airline will also sell tickets in excess of numbers of seats to anticipate the possibility that some ticket buyers will cancel their travels.

But, in case all ticket buyers show up, Garuda will ask some of them to voluntarily delay their travel and, in return, the airline will reward them with a cash compensation valued at 40 percent of their ticket price or a free one-way ticket. -- JP