Asita not worried about aircraft fuel prices increase

Jakarta (ANTARA News) - The Association of Indonesian Travel Agencies (ASITA) is not worried about the increase in the aircraft fuel prices, ASITA spokesman Jongky Adiyasa said.

Jongky said that the increase in the aircraft fuel constituted an international policy which was effective world wide.

He said that his side was not concerned let alone worried about the possibility of the tariff increase to have impact on Indonesia`s tourism industry.

"So far, based on the international policy the airlines will bear the fuel surcharge," he said adding that with the policy the tourism industry would be protected from the aircraft fuel price turmoil.

The increase in the world crude prices of late which have reached US$114 per barrels has effect on the aircraft fuel prices which are feared to directly affect Indonesian airlines.

However, he said, his side was more worried about the government`s plan to impose a subsidized fuel oil consumption limitation which would not exclude tourism vehicles.

According to Jongky, the policy would very much threaten the Indonesian tourism industry because so far fuel oil consumption accounted for 40 percent of industry`s operational costs.

"The increase in operational cost could reach 100 percent and it must be borne by the tourism operators," he said. (*)