INACA to raise airfares

INACA to raise airfares

JAKARTA (JP): The Indonesian National Air Carriers
Association's (INACA) chairman, Soelarto Hadisumarto, said
yesterday the association was considering raising domestic
airfares to offset the fall of the rupiah against the U.S.
dollar.

"INACA will raise the airfares based on a ministry of
transportation decree," Soelarto said as quoted by Antara
yesterday.

Under decree No. 20/1996, dated April 3, 1996 and signed by
Minister of Transportation Haryanto Dhanutirto, airfares should
be adjusted every six months to the rupiah rates against the U.S.
dollar.

The government did not increase airfares last May, the
beginning of the current six-month period.

Director General of Air Transportation, Zainudin Sikado, said
airfares should have been adjusted with the new exchange rate.

"INACA should propose the raise to the government. We will
then inform House of Representatives members," he said. (icn)