Transport Minister insists that aircraft ticket price increases must not exceed 13 percent
Jakarta (ANTARA) - Transport Minister Dudy Purwagandhi has emphasised that airlines must not increase aircraft ticket prices beyond the maximum limit of 13 percent, in line with the government’s established policy.
Dudy explained that the government has set the range for ticket price increases between 9 and 13 percent, urging airlines to adhere to this regulation without taking excessive profits.
“We hope, as announced yesterday, that the range for the increase (in aircraft ticket prices) is 9-13 percent. It must not exceed that,” said the Transport Minister during a discussion with the media in Jakarta on Thursday evening.
According to Dudy, the government has provided various stimuli to suppress airlines’ operational costs, including a policy on value-added tax (VAT) borne by the government and adjustments to additional cost components (fuel surcharge) that are permitted to rise.
In addition, the government has offered relief in the form of exemptions from aircraft spare parts costs, so overall, there is no reason for airlines to raise ticket prices beyond the determined limit.
“Because what? The government’s VAT policy is already covered. Then the fuel surcharge is also allowed to rise up to 38 percent. Spare parts are exempted,” explained the Transport Minister.
He added that the government has conducted thorough calculations regarding the aviation industry’s cost structure, so a reasonable ticket price increase should remain within the 9-13 percent range.
“So the aviation or airline industry should have no more reasons to add increases. We have calculated that the increase should only be 9-13 percent,” stated Dudy.
The Ministry of Transport is also continuously monitoring the implementation of this policy by airlines, as previously done during the Eid transport period to ensure no violations occur in the field.
“And praise be to God, during Eid yesterday, I hardly heard any more complaints about ticket conditions during Eid. So we monitor it very closely,” he said.
Nevertheless, he emphasised that the government does not regulate business class tickets because that segment is intended for certain consumers, so the pricing mechanism is entirely left to the market.
“So we monitor it very closely. Except for business, we don’t regulate business. That’s business for those who can afford it,” said the Transport Minister.
The government is maintaining a balance in adjusting aircraft ticket fares to protect the public’s purchasing power while ensuring the national aviation industry’s sustainability remains healthy and competitive.
This is done as a strategic mitigation step in facing the rise in avtur prices due to the surge in global crude oil prices following geopolitical dynamics in the Middle East.
One of the policies taken by the government through the Ministry of Transport is adjusting the fuel surcharge (FS) component to 38 percent, where previously it was 10 percent for jet aircraft and 25 percent for propeller aircraft.
Dudy conveyed that this policy is an effort by the government to maintain harmony between the sustainability of the aviation industry and the protection of the public as consumers.