Six airlines to introduce flexible air tickets

JAKARTA (JP): Six domestic airlines have agreed to introduce flexible tickets which will be valid for a follow-up of their agreement in May to cease competition on airfare discounting.

Flexible tickets will allow passengers that are kept off an overbooked air carrier to fly another carrier with the same route.

Chairman of the Indonesian Air Carriers Association (Inaca) Soelarto Hadisumarto told reporters here yesterday that the idea will help to end the "price war" among the six domestic airlines, Garuda Indonesia, Merpati Nusantara Airlines, Bouraq Indonesia, Mandala Airlines, Sempati Air and Dirgantara Air Service.

"Actually, we are still focusing on the recent accord, in which the airlines have agreed to collude on prices, which began effective as of early this month," Soelarto said.

He said that flexible tickets, however, will likely avoid the airlines from reducing airfares from passing allowed-discount levels for travel agencies and passengers.

"Such a proposal has been submitted to the Ministry of Transportation but its implementation will likely take place by the end of next year," Soelarto said.

He said that Inaca still gets engaged with the current regulation, which requires airlines to pay a fine of up to Rp 10 million (US$4,621) for each violation they make of the agreement on fare discounting.

Inaca will collect the funds from the fining but so far no agency has been assigned to control the accord. (icn)