Indonesia to regulate the price of airline tickets

Lauren Eldershaw
By Lauren Eldershaw April 8, 2019 14:23

Indonesia to regulate the price of airline tickets

The Indonesian Transportation Ministry has issued new regulations on airfares, which will regulate airline ticket prices for economy class services of commercial airlines.

The ministry’s Civil Aviation Directorate General secretary, Nur Isnin Istiarto, said the new regulation regulated the procedure of calculating and formulating airfares in general, while the decree specifically regulated price ceilings for all routes.

The regulations also contain stipulations that must be fulfilled by airlines when setting rates.

According to the new regulation, the price floor for tickets (TBB) is set at 35 percent of the price ceiling for tickets (TBA). Previously, the TBB was set at 30 percent of the TBA, meaning the TBB increased 5 percent.

Lauren Eldershaw
By Lauren Eldershaw April 8, 2019 14:23