Government and Companies Point Fingers over Surging Air Fares

Government officials are divided on who or what attributes to the surging airline prices in Indonesia. Despite the ministry pointing its finger to the lack of fleets, others suspect a monopoly of jet fuel distribution, which results in non-competitive selling prices.

Tim Redaksi

13 Feb 2024 - 16.44
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Government and Companies Point Fingers over Surging Air Fares

Passengers checking in at Terminal IA of Soekarno-Hatta Airport, Banten, Tuesday (17/3/2020). Bisnis/Eusebio Chrysnamurti

Bisnis, JAKARTA — The prices of airplane tickets remain high for the past few years, as the number of airline fleets in operation continues to decrease. Additionally, the price of jet fuel, also known as aviation turbine fuel or avtur, is said to contribute to the high operational costs of aircrafts.

During the 2020–2022 pandemic period, airlines simultaneously returned leased aircraft to lessors due to the decline in passenger occupancy for each flight. However, when the pandemic subsided, the number of available airlines did not return to normal levels.

InJourney Airport records that the number of operating airlines in the country is currently around 444 units. This number is significantly lower compared to the pre-COVID-19 period in 2018, which was around 750 units.

Aviation industry players have mentioned on several occasions that several other factors contribute to the high price of flight tickets, including avtur costs, difficulties in obtaining spare parts, and the weakening of the rupiah against the US dollar.

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© Copyright 2024, Hak Cipta Dilindungi Undang - Undang.