Flight Tickets Still Expensive, Avtur Prices Must Be Evaluated

Airlines that are members of the Indonesia National Air Carrier Association (INACA) promise airline ticket prices to drop.

INACA General Chair IGN Askhara Danadiputra said, the airline would listen to the complaints of the public, so the airline committed to lowering prices.

According to travel bureau businessmen who are members of the Association of Indonesian Travel Companies (Asita), currently the price of airline tickets is still expensive.

“Until now, it is still a bit expensive. Maybe there is one or two that is going down but not too significant,” Deputy Chairman Asita, Budijanto Ardiansyah, told detikFinance, Jakarta, Wednesday (1/16/2019).

His party is still waiting for developments regarding the decline in airplane ticket prices.

“I think it should first see the development because it seems that not all are lowered. Only in certain classes and certain routes. So it is not normal,” he said.

According to reports he received from fellow travel bureau businessmen in small areas, there are certain routes that are still expensive.

Actually, his party did not blame the airline for raising the price of airline tickets, provided that they were affordable for the public. Affordable prices to encourage stretching domestic tourism.

Aviation expert Alvin Lie said that the price of expensive aviation fuel could make airline companies scream if they had to reduce airplane ticket prices. Because the burden of the airline is becoming increasingly heavy.

“Yes they actually shouted too, they were financial difficulties,” he said when contacted by detikFinance, Jakarta, Wednesday (01/16/2019).

Moreover, he said, avtur prices sold by Pertamina for domestic airlines are more expensive than international flights.

“Pertamina’s price (avtur) for domestic is 20% more expensive than for international ones,” he continued.

According to him, this price difference has a significant effect on company expenses.

“Yes, the difference has a significant impact. This avtur cost is around 40-45 percent of aircraft operating costs per hour. While the airline company’s margin is only around 3-4 percent. If you can have a 4 percent margin, it will be great,” he explained

Head of the Communication and Public Information Bureau of the Ministry of Transportation (Kemenhub) Hengki Angkasawan, Minister of Transportation (Menhub) Budi Karya Sumadi asked ESDM Minister Ignasius Jonan to evaluate avtur prices.

“So from the government side we will discuss with officials at ESDM. Yesterday also the minister of transportation had communicated with the Minister of Energy and Mineral Resources and State Minister of BUMN. And indeed an evaluation will be made (avtur prices) lowered,” he said when contacted by detikFinance, Jakarta, Wednesday (16 / 1/2019).

But he didn’t know what the future would be like. Because the authority to reduce avtur prices, according to him, is in the Ministry of Energy and Mineral Resources.

He continued, the Minister of Transportation and the Minister of ESDM would return to communication related to the evaluation of avtur prices. From the initial discussion, each ministry agreed to evaluate the price of avtur.

“Later, maybe the minister will communicate, but yesterday it was communicated and all of this yesterday agreed to evaluate. But what the results are, we will wait,” he said.

“But the airlines have not yet been implemented (a decrease in avtur prices) and they have already lowered (the price of airline tickets). This is a form of their concern,” he added. (ang / ang)

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