INACA punishes airfare discounters
INACA punishes airfare discounters
JAKARTA (JP): The Indonesian National Air Carriers Association
(INACA) has fined six domestic airlines Rp 10 million each for
violating an agreement on allowable airfare discount levels
signed in May.
INACA's chairman, Soelarto Hadisoemarto, said yesterday that
the penalty was imposed on the airlines as they were found
offering excessive discounts to travel agencies and passengers.
Under an INACA agreement signed on May 20, discounts for
travel agents are limited to a maximum of seven percent, far less
than previous discounts reaching more than 40 percent. The
agreement, signed by Garuda Indonesia, Merpati Nusantara, Bouraq
Indonesia, Mandala Airlines, Dirgantara Air Service and Sempati
Air, was effective as of July 1, while the fines were effective
as of Nov. 1.
The agreement also allows airlines to offer discounts of up to
15 percent to members of professional organizations attending
special conferences, 25 percent to students, 35 percent to
elderly people and 45 percent to veterans.
Return tickets may obtain a discount of up to five percent and
tickets for tour packages 15 percent, while foreign tourists who
use Indonesian airlines for their domestic flights and employees
of travel agents and airlines can enjoy discounts of up to 50
percent.
The agreement requires airlines pay the association a fine of
up to Rp 10 million (US$4,559) for each violation against the
agreement, even though no agency has so far been assigned to
control the fine collections.
"Actually INACA has found each airline guilty of more than one
violation, but as `shock therapy' but for the beginning the
association just fined the six airlines for one violation. The
airlines can accept this," Soelarto said as quoted by Antara news
agency.
He also said INACA, which groups 21 air carriers, will be
stricter in imposing sanctions in the future.
According Soelarto, the association will hold a meeting to
discuss endorsable tickets, which will help put a stop to unfair
competition through airfare discounting. Endorsable tickets will
allow passengers of an airline to fly another carrier which has
the same route. (icn)