On the Increasing Price of Domestic Flight Tickets

[unpad.ac.id, 21/3/2019] Recently, a number of airlines in Indonesia raised the airfare for domestic routes. The policy itself then immediately earned complaints from flyers.

A number of speakers attended in the public discussion “Business Competition in the Aviation Industry” held in Tommy Koh-Mochtar Kusumaatmadja Auditorium, Universitas Padjadjaran Faculty of Law, Jatinangor, Thursday (21/3) (Photo: Tedi Yusup)

Head of Navigation Law Masyarakat Hukum Udara (MHU) ‘Society for Aviation Law’ Dovy Brilliant Hanoto said, the determination of flight ticket prices is a sensitive issue. Airlines must be careful in announcing the increase of ticket prices to the public. The number released as ticket price doesn’t just come out of nowhere.

“[There] must be a basis of calculation explained by the airline,” said Dovy in the public discussion “Business Competition in the Aviation Industry” held in Tommy Koh-Mochtar Kusumaatmadja Auditorium, Universitas Padjadjaran Faculty of Law, Jatinangor, Thursday (21/3).

Flight rates are regulated by Ministry of Transportation through ministerial regulation (Permenhub). The rate is calculated based on multiplication of the distance and basic rate.

What we call basic rate is the operational cost, direct or indirect, explained Dovy, direct cost includes airplane rent, hangar rent, airport rent, insurance, as well as the jet fuel ’avtur’.

“Even ticket printing cost is already included in the Permenhub. [Airlines] are not allowed to burden consumers with the ticket printing cost,” spoke Dovy.

Thus, Dovy pushed the Indonesian Business Competition Supervisory Commission (KPPU) to evaluate the flight prices problem based on its components.

“What becomes the base behind the airline increasing the prices, is what we must observe. Although the current issue is the increasing avtur price, we have to see it objectively,” said Dovy.

KPPU member, Dr. Guntur S. Saragih, said that concerning the case KPPU has done an investigation to a number of sectors related to aviation because the aviation sector does not only concern airlines.

At the airline level, KPPU has investigated flight tickets and cargo. Outside of airlines, KPPU also does an investigation to the jet fuel producer sector, baggage, and did advocacy about airports.

“The efficiency or competitiveness of the aviation industry does not only concern airlines. [The efficiency of the aviation industry] also concerns avtur, Angkasapura as the airport management. Unfortunately, we only focus on the downstream problems, or what is directly in contact with consumers, tickets,” said Guntur.

The public discussion also invited the lecturer and Head of Unpad’s Magister of Notoriety program, Dr. isis Ikhwansyah, S.H., M.H., CN. Dr. Isis talked about the increasing flight ticket price phenomenon from the law enforcement side.

Report by Arief Maulana
Translated by Dinda Ayu Maharani

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