THE Indonesian National Airline Company Asociation (INACA) hopes that the government can realize the implementation of a single price aviation fuel (avtur).
According to INACA Chairperson Denon Prawiraatmadja said the current condition is the avtur price disparity in the western and eastern parts of Indonesia. The difference reaches Rp3,000 per liter.
“Avtur is expected to have even distribution [of prices] in the territory of Indonesia, so that the prices offered to airlines are more competitive. Hopefully, our input can be implemented,” Denon said.
He added, the INACA claimed the application of a single-price aviation fuel is currently still under study by the association. Several airports will soon be surveyed to see the condition of price disparity.
According to him, aviation fuel is the largest contributor to airline operating costs, which is between 30%-40%. In addition, fluctuations in foreign currencies are also a cause of sensitive operational costs.
“Our side said there was a difference in the price of aviation fuel that occurred between the Western and Eastern regions of Indonesia. Airlines that operate in remote destinations have been burdened with high avtur prices, “Denon said.
He added that airlines had a role in supporting government programs to open connectivity in remote areas. Usually the area is in the East.
The airline, he continued, has opened the connectivity to several routes both pioneering and commercial. However, there needs to be a long-term concept that can be implemented to support the success of this connectivity program.
“So, it does not burden private airlines because usually the operation of remote routes has a low level of occupancy coupled with high operational costs,” he said. [business.com/photo special]