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TRANSPORTATION Minister Dudy Purwagandhi stated that he would endeavor to reduce domestic airline ticket prices in advance of the 2024/2025 Christmas and New Year holidays. However, he did not guarantee that the reduction in domestic airline ticket prices would reach 10%.
Former Transportation Minister Budi Karya Sumadi previously set a target of reducing airline ticket prices by approximately 10% by October 2024. However, Dudy stated that the extent of the reduction in airline ticket prices must be evaluated based on the most recent data.
“I don’t want to give the public an unrealistic expectation. “I must evaluate the feasibility of the reduction and determine the extent of the potential decrease,” Dudy stated at the DPR Building on Wednesday, November 6, 2024.
Dudy will receive the results of the recommendation to reduce airline ticket prices this week. He stated that the recommendation is the result of the work of a technical team formed by the Coordinating Ministry for Infrastructure and the Coordinating Ministry for the Economy.
Previously, former Transportation Minister Budi Karya disclosed that he had submitted a proposal to reduce airline ticket prices for domestic routes. However, only two of the four proposals are feasible in the near term. If the two proposals are implemented, ticket prices will be reduced. Nevertheless, in the event that the two proposals are not accepted, a reduction in ticket prices will not be possible until the following month (December).
He stated that the Ministry of Finance has received the proposal to adjust the tax on aircraft spare parts. Additionally, the Coordinating Ministry for Maritime Affairs and Investment has expressed support for the proposal to establish an aviation fuel procurement business at the airport.
The Business Competition Supervisory Commission previously determined that the primary driver of elevated airline ticket prices was the monopoly of aviation fuel supplies held by Pertamina. This practice has resulted in domestic aircraft fuel prices being 43% higher than in other Southeast Asian countries.
Aviation fuel plays a pivotal role in determining airline ticket prices, with its contribution reaching 45%. Consequently, a reduction in its price would lead to a corresponding decrease in domestic airline ticket prices. [sources/photo special]
