Govt raises domestic airfares by 4 percent
Govt raises domestic airfares by 4 percent
JAKARTA (JP): The government has raised domestic economy
airfares by up to 4 percent due to the appreciation of the U.S.
dollar against the rupiah, a ministerial decree showed yesterday.
Based on a decree signed on Oct. 4 by Minister of
Transportation Haryanto Dhanutirto, the new airfares, which were
not previously announced by the government, were effected on Oct.
8.
Indonesian National Air Carriers Association Chairman Soelarto
Hadisumarto told The Jakarta Post yesterday that the airfare
increases are appropriate because they are consistent with a
decree signed by Minister Haryanto last April, which stated that
domestic airfares would be adjusted automatically every six
months in line with the fluctuations of the dollar against the
rupiah.
In April, the government raised transportation fares,
including airfares, based on the considerations of inflation,
changes in foreign exchange rates, salary increases of employees
of transportation companies, increments in vehicle maintenance
costs and higher prices of fuel, vehicles, spare parts and
electricity.
According to the Oct. 4 decree, the airfares for jets are set
at Rp 285 (12 US cents) per passenger per kilometer for a
distance of below 600 kilometers (up 3.63 percent), Rp 278 for a
distance between 601 kilometers and 750 kilometers (up 3.34
percent), Rp 270 for a distance between 751 and 900 kilometers
(up 3.05 percent), Rp 263 for between 901 and 1,050 kilometers
(up 2.73 percent) and Rp 260 for over 1,050 kilometers (up 4
percent).
The new airfares for non-jets are set at Rp 398 (US$0.168) per
passenger per kilometer for a distance below 150 kilometers (up
3.1 percent), Rp 389 for between 151 kilometers and 225
kilometers (up 3.18 percent), Rp 380 for between 226 and 300
kilometers (up 3.26 percent), Rp 370 for between 301 and 375
kilometers (up 2.77 percent) and Rp 356 for a distance of over
375 kilometers (up 1.71 percent).
The new fares are based on a conversion rate of Rp 2,372 to
US$1.
The U.S. dollar was traded yesterday at a range of between Rp
2,319 and Rp 2,367, as compared to Rp 2,313 to Rp 2,357 on April
3.
Soelarto also said yesterday that six domestic airlines are
expected on Nov. 9 to sign an accord on endorsable ticketing
arrangements with an aim of improving services and reducing
competition.
The six airlines -- Mandala Airlines, Sempati Air, Garuda
Indonesia, Merpati Nusantara, Bouraq Indonesia and Dirgantara Air
Service -- agreed in November 1995 to start issuing endorsable
tickets for domestic flights this year in order to prevent price
wars on airfares.
The implementation of the agreement, however, has been delayed
several times due to problems in technical details, including the
validity of endorsable tickets, baggage handling, insurance,
accounting systems, documentation and billing. (icn)