In­done­sian air­lines slash fares af­ter out­cry over hol­i­day surge

The Star Malaysia - StarBiz - - Front Page -

JAKARTA: In­done­sian air­lines re­duced air fares for some lo­cal routes by as much as 60% start­ing last week in re­sponse to a back­lash over a surge in ticket prices dur­ing the peak hol­i­day sea­son.

PT Garuda In­done­sia, Lion Air and PT Air Asia In­done­sia are among the car­ri­ers which cut prices from Jan 11, the In­done­sian Na­tional Air Car­rier As­so­ci­a­tion said in a state­ment yes­ter­day.

Ticket prices on the Jakarta-Den­pasar, Jakarta-Yo­gyakarta and Jakarta-Surabaya routes were slashed be­tween 20% and 60%, I Gusti Ngu­rah Askhara Danadipu­tra, chair­man of the as­so­ci­a­tion, told re­porters in Jakarta.

The air­lines are plan­ning to drop fares for more routes fol­low­ing a com­mit­ment by state-owned air­port op­er­a­tors, air nav­i­ga­tion agency and PT Per­tam­ina, which sup­plies jet fuel, to lower lo­gis­tics and nav­i­ga­tion costs, the as­so­ci­a­tion said.

The price cuts may make air travel af­ford­able to more In­done­sians and con­trib­ute to the na­tion’s eco­nomic and in­fra­struc­ture growth, it said.

The as­so­ci­a­tion, which also com­prises cargo car­ri­ers and char­tered op­er­a­tors, won’t com­pro­mise on flight and pas­sen­ger safety with the re­duc­tion in fares, Danadipu­tra, who is also the pres­i­dent-di­rec­tor of Garuda, said.

Mean­while, Emi­rates plans to re­duce its num­ber of flights by 25% dur­ing the clo­sure of Dubai In­ter­na­tional Air­port’s south­ern run­way for 45 days.

The clo­sure, sched­uled be­tween April 16 and May 30 for main­te­nance, will re­sult in up to 48 Emi­rates air­craft not be­ing utilised, the world’s largest long-haul car­rier said in a state­ment.

The north­ern run­way, one of the two at the air­port, was closed for 80 days in 2014 as it un­der­went re­fur­bish­ment.

The clo­sure cost Emi­rates Group an es­ti­mated US$467 mil im­pact on rev­enue, ac­cord­ing to its fi­nan­cial state­ment.

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