INACA wants higher fares

INACA wants higher fares

JAKARTA (JP): The Indonesian National Air Carriers Association
(INACA) is proposing a 70 percent hike in domestic airfares to
US$0.13 per kilometer per seat starting at the end of March.

Association chairman Soelarto Hadisoemarto said it was
impossible for airline companies to cover operating costs at the
current airfare rate of US$0.075 per kilo meter per seat
following a 76 percent increase in jet fuel prices .

"We will consult with the House of Representatives regarding
the airfare increase very soon," Soelarto was quoted by Bisnis
Indonesia daily on Saturday as saying.

Soelarto said he understood the country's unfortunate economic
condition and said raising airfares gradually every six months
was a possibility.

Separately, INACA secretary Benny Rungkat said the association
would also discuss with the government payment of the airfare in
U.S. dollars.

The country has five commercial airlines -- state-owned Garuda
Indonesia and Merpati Nusantara Airlines, and private Bouraq
Airlines, Mandala Airlines and Dirgantara Air Services. Sempati
Air went out of business last June due to the crisis. (02)