Govt Makes all Airlines Raise Fares
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Govt Makes all Airlines Raise Fares
What a enlighted, forward-thinking country this is.....
The Jakarta Post, 3 June 05
Govt makes all airlines raise fares.
JAKARTA (JP): The Ministry of Transportation will raise the minimum ticket fares for domestic destinations next week to prevent liberalized competition in the country's airline industry.
Minister of Transportation Hatta Radjasa said the fare increase was likely to be in the range of at least around 10 percent from the current average of some Rp 265,000 (about US$28) -- a per hour/passenger cost of at least Rp 285,000.
"Aside from adjusting for the rise in fuel prices, the increase is also aimed at preventing 'unfair' competition in the industry. There are some airlines willing to 'dump' their fares to get more passengers," said Hatta on Thursday.
He said that the practices of dumping ticket fares would trigger price wars between airlines, which would eventually bankrupt many, since the fares that some are willing to offer to passengers would not cover operational costs.
The initiative to increase the fares was taken after domestic airlines incurred higher operational costs due primarily to the rise in fuel prices. (Ren/*)
The Jakarta Post, 3 June 05
Govt makes all airlines raise fares.
JAKARTA (JP): The Ministry of Transportation will raise the minimum ticket fares for domestic destinations next week to prevent liberalized competition in the country's airline industry.
Minister of Transportation Hatta Radjasa said the fare increase was likely to be in the range of at least around 10 percent from the current average of some Rp 265,000 (about US$28) -- a per hour/passenger cost of at least Rp 285,000.
"Aside from adjusting for the rise in fuel prices, the increase is also aimed at preventing 'unfair' competition in the industry. There are some airlines willing to 'dump' their fares to get more passengers," said Hatta on Thursday.
He said that the practices of dumping ticket fares would trigger price wars between airlines, which would eventually bankrupt many, since the fares that some are willing to offer to passengers would not cover operational costs.
The initiative to increase the fares was taken after domestic airlines incurred higher operational costs due primarily to the rise in fuel prices. (Ren/*)
