If there are subsidies, they help market (airplane tickets), and then occupancy increases
Jakarta (ANTARA) - The government is seeking a balance in terms of the expensive airfares that contribute to inflation, Transportation Minister Budi Karya Sumadi stated.

"We maintain a balance in the capabilities of the transport sector through (the policy of) not raising ticket prices. We must discuss in detail, how we (can) regulate prices, so that inflation in that sector would not be too high," Sumadi noted at the Presidential Palace after attending the opening of the 2022 National Coordination Meeting on Inflation Control here on Thursday.

"One important aspect is the participation of local governments to provide subsidies to the community due to several inefficiencies that occur in the regions," he pointed out.

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According to Sumadi, some aircraft occupancies are not even up to 50 percent that had resulted in airlines neutralizing or adjusting prices.

"If there are subsidies, they help market (airplane tickets), and then occupancy increases. Thus, prices can be maintained. The price is directly proportional to occupancy, (but) there are many regions where the occupancy is low, and this must be managed," the minister explained.

Even so, he admitted that the rise in prices of aviation turbine fuel (avtur) also increased airfares.

Hence, Sumadi spoke of having communicated with the local government regarding the subsidies.

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"There had been (communication), and today, with the president's order, we will intensify it," he said.

During the 2022 National Coordination Meeting on Inflation Control, President Joko Widodo (Jokowi) acknowledged having received several complaints about the high price of airfares.

Earlier, the Transportation Ministry had allowed airlines to hike the price of airfares in accordance with the implementation of the ministerial policy KM No. 142 of 2022 concerning the amount of surcharge caused by fluctuations in fuel surcharge.

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Translator: Desca N, Kenzu T
Editor: Fardah Assegaf
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