Ministry of Transportation: Expensive Flight Tickets Due to Indirect Flights

Jakarta — The Ministry of Transportation suspects that public complaints regarding expensive airline tickets during the exodus period are caused by bookings for indirect or transit flights rather than direct service.

“Looking at reports on social media, the high prices are actually due to the flight tickets not being direct routes. For example, instead of a direct Cengkareng-Padang route, it goes through Yogyakarta,” said Agustinus Budi H, Director of Civil Aviation at the Directorate General of Transportation of the Ministry of Transportation, during a press conference in Jakarta on Tuesday.

With this scheme, ticket prices tend to be more expensive as they fall outside the Upper Tariff Limit (TBA) calculation, which is designed for direct flights.

Agustinus noted that the current TBA regulations were established in 2019 under the Ministry of Transportation Decision Number KM 106 of 2019 concerning the Upper Tariff Limit for Passenger Services in Economy Class of Scheduled Domestic Commercial Air Transport.

At that time, the rupiah exchange rate was approximately Rp14,000 per US dollar with jet fuel costs around Rp10,000. Currently, with the rupiah exchange rate approaching Rp17,000 per US dollar, jet fuel costs have reached Rp16,000.

“In mathematical terms, this should also change, since our country applies both the TBA and Lower Tariff Limit (TBB). That’s why airlines during peak season will naturally apply rates according to the TBA,” he explained.

The ministry conducts routine monitoring of airline ticket prices based on the TBA calculation plus value-added tax (VAT), passenger service charge (PSC), compulsory levies, and fuel surcharge.

From monitoring results conducted primarily at Soekarno-Hatta Airport in Tangerang, the ticket prices sold comply with applicable regulations.

The ministry acknowledges the need to pay attention to airline ticket affordability for the public. However, it must also consider the sustainability of airline operations.

To this end, the ministry continues discussions with airline operators regarding operational costs. These discussions include examining the deviation between the 2019 TBA calculation and the airlines’ current operational conditions.