AIRLINE ticket prices continue to soar. This phenomenon often occurs in Indonesia, especially when the holidays arrive.
Aviation observer from the Indonesian Aviation Network, Gerry Soejatman, revealed four reasons behind the high price of domestic plane tickets. First, demand for domestic airline tickets is correlated with Gross Domestic Product in the medium and long term.
“Demand for flights is a function of price and Gross Domestic Product (GDP). There are many factors involved but this is the dominant one,” said Gerry at X@GerryS, quoted Tuesday (11/14), 2023.
Second, Indonesia’s GDP in 2019 was recorded at US$1,119 trillion, while the estimated GDP for 2023 was US$1,420 trillion. If calculated, demand for aircraft increased by around 26.9%. Third, the number of aircraft is at a sad figure. The fleet of scheduled passenger airlines fell from 600-650 in 2019 to 389. Currently there is a decrease in supply of around 45%.
Fourth, when demand rose 26.9 percent and capacity fell 45%. There was a shortage of aircraft supply of around 72% which triggered high aircraft prices. [kumparan.com/photo special]