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THE INDONESIAN National Air Carrier Association (INACA) has spoken out regarding the Ministry of Transportation’s plan to reduce the Upper Limit Tariff (TBA) for airline tickets for a number of regions in Indonesia.
According to INACA General Chair Denon Prawiraatmadja, he explained that his party had no objection to the Ministry of Transportation revising the upper limit rates for plane tickets for certain areas. This is an incentive that airline companies can enjoy.
However, he reminded that the revision should also be accompanied by an appropriate business model. Denon said that currently there are a number of airlines that have opened pioneering routes in remote areas. However, in terms of business, these airlines are experiencing many problems that have an impact on both the airline and society.
Denon hopes that the government together with all stakeholders can find a business model concept for this sector in the future. This is so that airlines that support remote area routes can maintain the continuity of their business performance.
“We cannot continue to hope for incentives from the government. This incentive pattern must stimulate growth,” he said at the INACA CEO Talks event in Jakarta recently.
Denon continued, it is also hoped that the revised TBA for airline tickets will not hamper the performance of domestic airlines. He said that adjusting the TBA for airline tickets could create a fair competition climate for airlines. The reason is, in the Minister of Transportation Decree (KM) 106/2019, TBA should be evaluated every 3 months.
“We hope that any regulations regarding upper limit tariffs will not hinder the performance of airline companies, meaning that healthy competition between our member airlines requires clarity in the rules,” he concluded. [sources/photo special]
