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