Higher air fares are not the answer

Higher air fares are not the answer

Indonesian airlines are calling for a price hike because
current domestic fares are considered inadequate. The present
rates are said to make it difficult for our airlines to purchase
new aircraft and perform necessary tasks.

The Indonesian Air Carriers Association (INACA) and individual
airlines want fares, which are calculated on the basis of 10 U.S.
cents per seat per kilometer, to be raised to a more appropriate
level. No definite rate for the calculation has been decided but
16 cents has been suggested.

We may assume that such an increase in air fares will not
significantly affect air travel because travelers have few
alternatives. Moreover, available data indicates that most of the
people who travel by air are either government employees or
business people.

It must, however, be kept in mind that an increase in air
fares would impede development in many areas, particularly in
Eastern Indonesia. Freight and travel costs would increase,
pushing up production costs.

Our domestic air transportation business is vital for the
achievement of national interests and national unity. There must
be another way to ensure our domestic airlines keep flying and
fulfill their duty as catalysts for cohesion.

-- Bisnis Indonesia, Jakarta