THE Indonesia National Air Carriers Association (INACA) regrets the actions of the management of seven national scheduled airlines that have been proven to have violated Law No. 5/1999 concerning Prohibition of Monopolistic Practices and Unfair Business Competition.
According to INACA Chairperson Denon Prawiraatmadja said that the airline’s management is now very cooperative towards the rules set by the government. Especially in the current COVID-19 pandemic where there are many protocols.
“I deplore the management of the seven airlines that were at the time of the case [in 2018]. The current condition is that the coordination between INACA member airlines and the Directorate General of Civil Aviation regulators is already good,” said Denon.
He added that in any part of the world, airlines are not allowed to enter into pricing agreements with other airlines. This will be detrimental to the public as the main user of air transportation.
The Business Competition Supervisory Commission (KPPU) has ruled that seven national scheduled airlines have been proven to have violated the provisions of Article 5 of Law No. 5/1999 concerning price-fixing agreements related to airline tickets in the 2018-2019 period.
Meanwhile KPPU Commissioner Guntur Syahputra Saragih said that the reported parties in this case were proven to have violated Article 5 of Law No. 5/1999 concerning Prohibition of Monopolistic Practices and Unfair Business Competition. Meanwhile, seven airlines involved, including PT Garuda Indonesia Tbk, PT Citilink Indonesia, PT Sriwijaya Air, PT NAM Air, PT Lion Mentari Airlines, PT Batik Air and PT Wings Abadi.
“One of the decisions, the reported parties violated Article 5 of Law No. 5/1999. Next we will provide a copy of the decision to the reported party,” he explained.
Sounds Article 5 paragraph (1) of Law No. 5/1999 is a business actor that is prohibited from making an agreement with a competing business actor to determine the price of goods and or services that must be paid by consumers or customers in the same relevant market.
Based on this law, in Article 48 paragraph (2), violations of the provisions of Article 5 are liable to a fine of no less than IDR5 billion and a maximum of IDR25 billion, or a sentence of imprisonment in lieu of a fine for five months. [bisnis.com/photo special]