SOE minister urges Garuda Indonesia to offer affordable tickets

JAKARTA (ANTARA) – State-Owned Enterprises (SOE) Minister Eric Tohir has called on Indonesia’s flagship company PT Garuda Indonesia (Persero) to offer affordable air tickets to the people.

In a statement Wednesday, Thohir said Garuda aims to become productive again in terms of the number of aircraft in service.

Thus, airfare, currently considered expensive, can be balanced by strategic measures by SOE.

According to Thhir, three factors drive flight price increases.

These factors include soaring jet fuel prices due to soaring global oil prices, a suboptimal number of aircraft in service, and an increase in airline purchases after Boeing and Airbus cut production. including the difficulties faced by

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The minister is optimistic that Garuda will be able to capitalize on the momentum of the revival in the aerospace industry, while remaining generally affordable despite the hurdles posed by the three components.

The National Capital Regulation (PNM) acts as an incentive for Garuda to increase its flight volume. Through the capital, he asserted, Garuda could compete and remain affordable to the general public.

Earlier, the Ministry of Transport had urged airlines to offer air tickets at affordable prices to maintain regional connectivity and continuity of air transport services in Indonesia.

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According to Transport Minister Decision No. 142 of 2022, issued on 4 August 2022, the government allows airlines to impose additional jet charges up to 15% of the cap rate.

On the other hand, for propeller aircraft, the maximum tariff rate is 25%.

Garuda Indonesia President Irfan Setiaputra said the policy reminds all parties in the air transport services industry to coordinate performance acceleration steps while maintaining their commitment to compliance with flight business regulations. I thought it was something.

This included implementing a ticket price component that references applicable regulations to continuously improve quality air transport services for people.

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