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THE GOVT ALLOWS AIRLINES TO INCREASE AIRFARE ACCORDING TO REGULATIONS

THE government through the Coordinating Ministry for Maritime Affairs and Investment permits airlines to raise tariffs according to the upper limit tariff, so that companies can survive in the COVID-19 pandemic.

According to Ridwan Djamaluddin, the Coordinating Ministry for Maritime and Investment Coordinating and Infrastructure Coordination at a virtual press conference in Jakarta on Monday (15/6), said that it would be nice if you want to take advantage of the opportunity to raise plane ticket prices according to the upper limit tariff. At the moment the price limit has not been utilized.

Ridwan explained that the airline was allowed to raise fares in line with the current passenger capacity limitation of aircraft transport capacity, which is 70%. The current condition is an emergency condition, especially for airlines that have to survive amid a decrease in passengers due to the spread of COVID-19.

“I also opened up opportunities for airlines with financial difficulties to sit together to find solutions. However, I caution that this emergency situation is not used to seek personal gain,” he said.

He added, I realize that industrial entities must live healthily, but please also consider nationally we are indeed in an emergency and extraordinary condition, which we cannot treat mediocre.

“The rules regarding the upper limit tariff are stipulated in the Decree of the Minister of Transportation No. 88 of 2020 concerning the Stipulation of the Upper Limit Rates for Passengers of Economy Class Services for Domestic Scheduled Commercial Air Transport During the Implementation of Large-Scale Social Restrictions in the Context of Accelerating Handling of COVID-19,” he noted.

He explained again, the minister’s decision was made on April 22, 2020, when the Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan served as the interim Transportation Minister to replace Budi Karya Sumadi who was being treated for COVID-19. The tariff increase is at least 50% from Upper Limit Rates according to the specified service group. [antaranews/photo special]