Six airlines to introduce flexible air tickets

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)