Ministry, KPPU Point Fingers over Expensive Airfares

The government holds conflicting opinions regarding the persistently high airfares in Indonesia. While the ministry attributes this condition to reduced fleet availability, other parties suspect that a monopoly on aviation fuel distribution may be causing uncompetitive selling prices.

Ni Luh Anggela & Rayful Mudassir

10 Feb 2024 - 09.33
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Ministry, KPPU Point Fingers over Expensive Airfares

Bisnis, JAKARTA - Airfares have remained high in recent years due to a decrease in the number of operating airline fleets. Additionally, the price of aviation fuel is said to contribute to the high operational costs for airlines.

During the 2020-2022 pandemic, airlines returned leased planes to lessors due to decreased passenger occupancy per flight. However, even as the pandemic subsided, the number of available airlines had not yet returned to normal levels.

InJourney Airport records indicate that the current number of operating airlines in the country is approximately 444 units, significantly lower than the pre-COVID-19 period in 2018, which had around 750 units.

Aviation industry stakeholders have noted several factors contributing to the airfare increase, including aviation fuel, shortages of spare parts, and the weakening of the rupiah against the dollar.

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