Low cost carriers to cut airfares amid public pressure

TRANSPORTATION BUSINESS - JAKARTA. Low-cost carriers have agreed to cut airfares beginning next week amid growing protests over persistently high airplane tickets in the country, Coordinating Economic Minister Darmin Nasution has said.

However, the reduction in airfares would only affect certain routes and flight times, especially during the low season, Darmin, said.

Darmin said the government could neither reveal the price cuts nor the routes and flight times that would be affected. The announcement regarding routes, schedules and price cuts would be announced by the respective airlines by next week.

To help reduce airlines’ operating costs, the government will provide fiscal incentives in aircraft rentals, maintenance, repair services and the import of aircraft components. In addition, he said the government would also ask companies involved in the industry to share the financial burden.

Pertamina has been asked to reduce avtur prices, while Angkasa Pura I and Angkasa Pura II as airport operators have also been asked to reduce fees for their services, such as aircraft landing and parking.