JAKARTA - Indonesian airlines are preparing to adjust tariffs as the Ministry of Transportation plans to raise the upper limit of fares for commercial scheduled flights amid the coronavirus (COVID-19) pandemic.
“We will comply with the government’s regulation. The government is planning to raise the upper airfare limit and we have been asked to make adjustments,” PT Garuda Indonesia (Persero) Tbk (GIAA) CEO Irfan Setiaputra told CNN Indonesia, Sunday (12/4).
This, said Mr Setiaputra, aims to prevent significant losses for airlines due to the current regulation that mandates modes of transportation to only carry passengers amounting to 50% of their total capacity.
“We will discuss losses later, and more importantly we fully support the government’s restrictions on mobility. If a flight is fully booked, we will use a widebody aircraft or operate an additional flight,” said Mr Setiaputra.
Meanwhile, Lion Air Group Corporate Communication Strategist Danang Mandala Prihantoro said that Lion Air Group is currently calculating potential losses from restrictions due to the COVID-19 pandemic, adding that the company will continue monitoring the latest policy from the Ministry of Transportation.
“Strategic policies in response to current situations are still being discussed internally by the company’s management,” said Mr Prihantoro. (MS)