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)