THE COODINATING Ministry for Maritime Affairs and Investment said that the minimum number of airplanes in the country has affected the price of air tickets. The number of aircraft operating in the country has decreased from 700 units to around 400 units due to the COVID-19 pandemic.

The Ministry of Transportation records that the total number of aircraft in operation will be only 420 by the end of February 2024. Deputy for Tourism and Creative Economy at the Coordinating Ministry for Maritime Affairs and Investment, Odo RM, assesses that the decrease in the number of aircraft has created an imbalance between supply and demand in the aviation industry at this time.

“Another thing that influences is the geopolitical conditions in various regions of the world, which has an impact on the increasing prices of aviation fuel,” Odo said in an official statement, Monday (04/22), 2024.

Odo said that aviation fuel is the largest contributor to airline ticket prices or 35%. Apart from aviation fuel, Odo calculates that there are three other components with a total contribution of up to 72% of the ticket price, namely aircraft maintenance costs of 16%, aircraft rental costs of 14% and aircraft insurance premiums of 7%.

Odo said the government has tried to reduce air ticket prices by issuing the Minister of Trade Regulation (Permendag) No. 3 of 2024 on Import Policies and Regulations. For your information, this regulation is one of the results of the revision of Minister of Trade Regulation No. 36 of 2024.

Minister of Trade Regulation No. 3 of 2024 removed aircraft spare parts from the list of restricted prohibited goods specifically for airlines. However, Odo admits that the contribution of air travel to domestic tourist travel is small.

Odo recorded that the majority or 85% of foreign tourists’ trips used land transportation. Meanwhile, air transportation contributed only 12% while the rest used sea transportation. [sources/photo special]