Flight Rate Increases by 10 Percent

The government will increase air transport fares by 10 percent this month.”Once the decision letter is signed by Minister of Transportation, immediately it will be implemented. It will not increase more than 10 percent,” said Director General of Civil aviation of Transportation Ministry, Herry Bahkti, last month.
Flight rate increase is consequence of the enactment of Decree of the Minister of Transportation No. 9/2002 on Commercial Tariffs of Air transport Passenger Domestic. Component of the rule requires fuel surcharge that previously stood alone, to melt with the basic rate, so that the limit of ratea is upper.
The new rules would benefit consumers. The government has the authority to determine upper limit of tariff because change in fuel surcharge is influenced by world oil prices. “If there is an increase in world oil prices regardless of the smount, fuel surcharge will remain our set,” said Herry.
According to Herry, not all of the national carrier could use the upper limit of rate set by the government. It is only permissible for the national carrier, which provides maximum services. If earlier each of the national airline fuel surcharge is merged with the base rate will be distinguished by the level of services provided.
“For instance, airlines that provide full service can apply 100 percent of upper limit, the medium service over 90 percent limit, no frills 85 percent of limit,” Said Herry.
Due to the increase, Chief Executive of Indonesian Consumers Foundation (YLKI) Sudaryatmo requested the government to tighten oversight of airlines. The government must improve its control function, so that the airline does not increase flight rate exceeds what was determined,” he said.
According to him, there are some airlines who seek unfair advantage through flight rate setting. For example, there are several airlines that recognize the low cost carrier, but it actually sells tickets above airline fares on full service carriers. “Although there is no regulation that prohibits it, this is something that is not true.”
Sudaryatmo reminded that the government did not impose the rate increase permanently because oil prices are always fluctuating. “So, if fuel prices come down, the government must come down air flight ticket,” he said.
Chairman of Air Transport Forum, Indonesian Transportation Society, Suhartu Abdul Majid, said the rate increase must be accompanied by an increase in quality and performance of airlines. So far, airlines have not shown a satisfactory basic performance. “It can be seen from the side of safety, punctually, service and efficiency,” said Suharto

Sumber : Jurnal Nasional, (March 1, 2010)