RI opposes Qantas', Ansett's tariff cuts

RI opposes Qantas', Ansett's tariff cuts

JAKARTA (JP): Minister of Transportation Haryanto Dhanutirto
said here yesterday that he would send a letter to his Australian
counterpart, criticizing the tariff cuts offered by Qantas and
Ansett in Indonesia.

The minister said that Indonesia and Australia had a bilateral
agreement to avoid a price war in the aviation industry.

"I've just learned that the Australian air carriers, Qantas
and Ansett, have offered cheaper airfares on their Indonesian
routes."

He said that Indonesia would also express its disapproval with
Singapore's SilkAir offering free tickets from Singapore to
Indonesia for some passengers.

"The airline has introduced a special promotion, presenting
free tickets from Singapore to Manado to passengers flying from
Europe to Singapore."

Haryanto said that the gimmick was hurting Indonesian
airlines.

Almost all foreign airlines serving Indonesia had launched
gimmicks to attract more passengers by reducing their fares
during the low season -- from August to mid December.

In November, Qantas and Ansett started offering cheap airfares
on their Indonesia-Australia flights.

Ansett's top executive in Indonesia, Con Korfiatis, and
Qantas' sales manager, Ronny Mampouw, said over the weekend that
their airlines cut the price of a Jakarta-Sydney-Jakarta ticket
from about US$600 or $700 to only $350 effective only for last
month.

Haryanto stressed yesterday that he only objected to Ansett,
Qantas and SiklAir cutting their rates in Indonesia.

"I don't mind other airlines reducing their fares."

Haryanto said yesterday that the Indonesia National Air
Carriers Association (INACA) had the right to raise domestic
economy-class airfares.

"I just warned them that an increase (in fares) must be done
gradually."

The government has recently approved an airfare hike, ranging
between 7 percent and 10 percent, as proposed by INACA. The new
airfares were introduced on Oct. 27.

Sources said that another hike would take place on Dec. 15,
with an average increase of about 10 percent.

Indonesia has six airlines including Bouraq Airlines,
Dirgantara Air, Garuda Mandala Airlines, Merpati Nusantara and
Sempati Air. (icn)