Jakarta (ANTARA News) - Garuda Indonesia plans to apply a ceiling price and reduce promotion ticket sales to deal with the impact of increasing price of airplane fuel.

"We will not as yet decide to increase the fare pending the decision of the regulator on fuel surcharge," its president director, Emirsyah Satar, said after signing a cooperation agreement with 32 state-owned companies here on Wednesday.

He said the hike in the price of airplane fuel had started affecting operational activities but he would not as yet take a decision to increase the fare.

He said to deal with it he would apply a ceiling fare and reduce sales of promotion tickets in several routes.

"The move is taken to overcome the impact of the hike in airplane fuel," he said.

Emirsyah did not give figures of the reduction of promotion ticket sales nor how many promotion tickets were sold every year so far.

"I did not know the exact numbers but the number of promotion tickets sold so far is quite a lot in line with the number of routes in certain period," he said.

He said Garuda would cut cheapest ticket sales but would maintain some of the most expensive sub-class ticket sales.

Emirsyah said he was not afraid the moves would reduce consumers` interest in the airline.

"It will be okay. What is important is Garuda will continue with its maximum service so that passengers would continue to enjoy the comfort of flying Garuda," he said.

Garuda, a state-owned airline, went public on February 11.
(T.R017/H-YH/HAJM/S012)

Editor: Priyambodo RH
Copyright © ANTARA 2011