Lion Group affirms commitment to government policy regarding flight fare ceilings
Lion Group has reaffirmed its commitment to following government policies regarding the planned discussions on the maximum fare ceiling (TBA) for aircraft tickets, as part of an effort to maintain the sustainability of the aviation industry and ensure air transport remains accessible to the wider public.
Danang Mandala Prihantoro, Corporate Communications Strategic at Lion Group, stated that the company continues to coordinate with regulators and various stakeholders to formulate policies that provide sustainable benefits to the community. “We continue to coordinate with regulators (the government) and stakeholders to ensure these policies are continuous and remain beneficial to the public,” Danint said during a press conference in Jakarta.
It is noted that the Coordinating Minister for Infrastructure and Regional Development, Agus Harimurti Yudhoyono (AHY), plans to discuss the flight fare ceiling alongside the Ministry of Transportation in response to global geopolitical tensions. According to the Minister, communication with regulators and stakeholders is being conducted to ensure that every implemented policy supports the balance between the needs of the aviation industry and the interests of passengers.
He emphasised that Lion Group respects every decision made by the government and stakeholders, provided the policy supports the continuity of the national aviation business and the overall air transport ecosystem. In addition to business sustainability, Lion Group believes that flight tariff policies must consider affordability so that the public can continue to enjoy optimal air transport services.
The company maintains that discussions regarding flight tariffs, including the maximum fare ceiling and other cost components, should be conducted through constructive dialogue with regulators and relevant industry players. Danang added that technical discussions regarding tariff policies will continue to be communicated intensively with the government.
Previously, the Coordinating Minister for Infrastructure and Regional Development, Agus Harimurti Yudhoyono, ensured that any adjustments to the maximum fare ceiling for aircraft tickets would be measured, taking into account the public’s condition and the rise in global energy prices due to Middle East conflicts. “It is not always easy to face such global dynamics, but we hope for an improvement in the situation and that (airfares) do not become too burdensome for the public,” AHY said in Jakarta.
Global conflicts and tensions have directly impacted the rise in global energy prices, which in turn affects the operational costs of the air transport sector and national aviation services as a whole. As the Coordinating Minister overseeing the Ministry of Transportation, AHY stated that the government is continuously discussing various policy options with the Ministry of Transportation to ensure that ticket price adjustments remain within reasonable and measurable limits.
The government is also coordinating with airlines operating in Indonesia to find the best solutions to face operational cost pressures caused by the current rise in global energy prices. Meanwhile, the Minister of Transportation, Dudy Purwagandhi, confirmed that discussions regarding the maximum fare ceiling for aircraft tickets will be conducted with airlines and stakeholders in response to the impact of global geopolitics on aviation operational costs. In the short term, the government will first formulate adjustments to additional costs (fuel surcharge) in response to the rise in avtur prices, which impacts airline operational costs. “Next, we will discuss the TBA (maximum fare ceiling),” said the Minister following a working meeting with Commission V of the House of Representatives (DPR RI) in Jakarta.